NZD/USD: Global demand shock is not a good backdrop – ANZ

The NZD is hovering around 0.63 and it’s tenure on borrowed time has been extended. But a global demand shock is not a good backdrop, in the opinion of analysts at ANZ Research.

Key quotes

“USD has been under pressure from the unwind of investment flows that have long favoured the US’s deep and strongly performing asset markets, which poses near term upside risks to the Kiwi, particularly given the RBNZ’s outwardly confident tone.” 

“The RBNZ will be forced to act given scale of the global COVID-19 shock, and the NZD remains a key release valve. Timing is everything.”

“Support 0.6210 Resistance 0.6360”