NZD/USD: Next major target level is 0.6450 – ANZ

Kiwi has seen move that has taken it through resistance at 0.6325. Next target on the upside aligns at 0.6450, economists at ANZ Bank report.

Large interest rate advantage for the Kiwi

“Kiwi has rallied strongly. This has come about mostly via a weaker USD (with the DXY at a fresh low for the cycle), but the NZD has also differentiated itself against the AUD, which we believe likely reflects its large interest rate advantage. That’s certainly a pillar of support (especially given the collapse in US bond yields).”

“Price action looks extremely solid, and technically, the next major target level is 0.6450 (marking both the Aug high and the 61.8% retracement of the whole 2022 move).”