NZD/USD: Lower interest rates to dampen a typical good month for the kiwi – ANZ
NZD/USD continues to range trade near 0.68. Lower interest rates may be a challenge but seasonality often delivers NZD strength in December, economists at ANZ Bank report.
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“The kiwi continues to fluctuate around 0.68 and seems to be well bid on any moves into the high-0.67s. But seems to be equally well-offered on any meaningful rallies, giving the impression that while it may have found a base, it is not in a hurry to go anywhere.”
“A less dovish Fed has not helped the USD this week. But US payroll data due out on Friday might give the USD a boost if it beats expectations.”
“Markets have ignored the seasonal tendency for the NZD to appreciate in December, and instead seem more focussed on interest rates, which have retreated from earlier highs.”
“Support 0.6700/0.6775 – Resistance 0.7000/0.7215/0.7310”