NZD/USD remains fairly well bid on dips – ANZ

While a good chunk of the NZD’s strength overnight owes to USD weakness, the kiwi itself remains fairly well bid on dips, and technically it looks reasonably sound, according to analysts at ANZ.

Key Quotes

“The break below 0.7250 last week was a false break – it was arrested quickly and lasted less than 24 hours. Although the data flow this week is light, there’s plenty going on in the political arena (here and abroad). At the margin that has tended to be USD negative. Political change is also possible here, but if that means more fiscal expansion, that’s not NZD negative. Tomorrow’s PREFU ought to show a decent fiscal picture.”

“Support 0.7280 Resistance 0.7370”