NZD/USD to run up amid near-term volatility – ANZ

The kiwi is a tad higher as the USD weakens further. Economists at ANZ Bank expect the NZD to strengthen this year, but USD weakness is becoming harder to take for granted.

Key quotes

“US core inflation data disappointed, but with the passage of the stimulus and the US economy reopening as vaccinations are rolled out at pace (the US has already administered 98M doses), USD weakness is becoming harder to automatically take for granted. 

The NZ story is a good one too, but other countries are now in line for their own reflation/recovery shocks. That speaks to near-term volatility rather than abandonment of our view of gradual NZD strength from here.”

“Support 0.7090/0.7100 –  Resistance 0.7300/0.7380”