NZD/USD: Early signs of breaking lower – Westpac

The kiwi is starting to respond to hard economic data, as economists at Westpac Institutional Bank note.

Key quotes

“We expect the hard economic data released over the next few months to reflect NZ’s lockdown which is more severe than for most other countries.”

“Commodity prices have started slipping again and will be influential, as will global risk sentiment.”

“NZD/USD is showing early signs of breaking lower, a sustained break below 0.5920 then signalling 0.5700.”