NZD: Cautious medium term outlook - ANZ

Analysts at ANZ explain that NZD’s direction last week was guided by the fact that markets took heart from the fact that the escalation in US-China trade tensions ‘could have been worse’ as better risk appetites led to a squeeze, exacerbated by the strong local GDP figures.

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“This week should have plenty of competing forces, and could actually be quite critical for the NZD’s near-term direction. We remain cautious medium term, but if the 0.6720 level were to break to the topside, then the timing of the further weakness we expect could be delayed.”