NZD/USD: Positive vibes, 0.7154 is the next major target – ANZ

The NZD/USD pair is trading comfortably above 0.70 as the USD weakens, NZ interest rates edge higher and positive Kiwi vibes stoke the bulls, economists at ANZ bank apprise. Technically, the kiwi also looks strong. 

Key quotes

“NZD/USD is comfortably trading above 0.70, having benefitted from higher local interest rates and USD weakness.” 

“There are a lot of reasons to be positive heading into the holiday season. We still have reservations further out (the stellar pace of the rebound simply can’t be sustained, and tourism remains an issue), but for now it’s a good news story and the market likes it.”

“Having broken 0.70, the technical picture is strong, and 0.7154, which is the 138.2% Fibonacci extension of the 2020 decline to 0.5623 is the next major target on a daily chart.”