NZD/USD: Attuned to the possibility of ongoing volatility – ANZ

NZD/USD ended the week little changed. Economists at ANZ Bank expect volatility into US data this week.

Rebound in broad risk appetite looks like a short squeeze

“The rebound in broad risk appetite (and drop in US bond yields) looks like a short squeeze, and how long the cheerful buzz lasts remains to be seen. It certainly looks out of step with hawkish Fedspeak and recent strong US data.”

“We remain attuned to the possibility of ongoing NZD volatility as markets weigh the pros and cons of post-flood rebuilding/sticky inflation/higher rates against the prospect of exports being disrupted and the USD benefitting from higher rates there.”

“Support 0.5750/0.5900/0.6090 Resistance 0.6540/0.6675”