The kiwi falls a little, but ANZ bank economists believe that positive risk appetite and encouraging news on the Wellington COVID-19 scenario will limit depreciation.
“The kiwi is slightly down this morning after a somewhat tumultuous session in FX markets, which was unexpected given the dearth of data and other factors. As the domestic trading session begins, US 10-year bond yields are lower and equities are higher, which is more typical of ‘risk on’ than ‘risk off,’ and suggests a floor in the NZD. Another piece of good news (or rather, a lack of bad news) is that Wellington appears to have escaped another COVID-19 bullet – fingers crossed. Fears of a worsening covid situation in Australia, on the other hand, could weigh on the NZD’s association with the AUD.”
“0.6900/0.6940/0.7030 Support 0.7100/0.7230 Resistance”
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