NZD/USD: In a holding pattern - ANZ

Analysts at ANZ suggest that NZD/USD pair is in a holding pattern nearer the bottom of its 5-day range, but conversely near the top of the trend down-channel.

Key Quotes

“Should we indeed be in a downtrend? We’re not convinced given the USD’s woes, but a spirited break through resistance at 0.7250 would be a bearish sign. New Zealand’s story is pretty good, and we expect tomorrow’s GDT auction to underscore that, with prices up ~3%. The theme of rate convergence is back in vogue amid the low inflation backdrop, and if that has any legs, NZ term interest rates need to fall, and for that to happen, buyers need to engaged, which should keep NZD bid.”

“Support 0.7250 Resistance 0.7330”