NZD/USD: sell on any rallies - ANZ

Analysts at ANZ explained that with the Fed now firmly hiking and debate over the pace of upcoming hikes intensifying, the drivers of the liquidity cycle are shifting.

Key Quotes:

"That should keep the USD in the box seat and the NZD in sell-any-rally mode. However, we do need to acknowledge that the recent USD rally has petered out, which we suspect means we will need to see the commodity complex give way and four-hike sentiment towards the Fed to firm for movements to accelerate again.

Neither are our central scenarios, though we believe a turn in the commodity complex is a key risk. A reasonable domestic pulse is expected to keep the NZD supported against non-USD crosses."