NZDUSD could close the gap to fair value seen at 0.65 – ANZ

The Kiwi seems comfortable in the high-0.61s. Can it advance to fair value and benefit from China reopening? Analysts at ANZ Bank discuss the NZDUSD outlook.

Technicals still look reasonably bullish

“Now that there is growing confidence that the USD cycle has peaked, our focus is on the NZD’s gap to fair value (which we see at ~0.65), on the RBNZ – who look well placed to close the gap on US interest rates, and on China’s re-opening, which ought to be good for commodities. But it’s complex given late-cycle fears the Fed’s still fairly resolute tone.” 

“Technicals still look reasonably bullish, in our view.”

“Support 0.5875/0.6000 Resistance 0.6235/0.6470/0.6575”