NZD/USD refreshed its monthly low around 0.6995 during early Friday. Economists at ANZ Bank expect the kiwi to extend its downmove as the rest of the world is set to normalise policy next year.
Has the shine finally come off the kiwi?
“Looking ahead, the domestic data calendar is pretty light ahead of the RBNZ MPS. We noted that the NZD had potential to benefit from the actual delivery of hikes, but as we near the decision, markets do not seem to be shy of fading NZD strength even knowing that hikes (and thus carry) are coming.”
“The kiwi did well after the 2020 lockdown, and has been mixed through 2021 (and has struggled >0.72 of late), but headwinds could be coming in 2022 as the rest of the world normalises policy. Let’s see.”
“Support 0.6860/0.6900/0.7000 – Resistance 0.7215/0.7310”