NZD/USD: Rising Delta cases may strain the kiwi a touch – ANZ

NZD/USD continues to hold up well, benefitting from generalised USD weakness. However, if we were to see another lift in Delta case numbers today that has the potential to dampen spirits a touch, strategists at ANZ Bank report.  

Disappointing August ADP employment report

“Local Delta case numbers lifted yesterday, dampening spirits a touch, but markets seem to be viewing it as more of a sign that NZ isn’t out of the woods yet, as opposed to something that might derail OCR hikes and the outlook (at least for now).”

“On the dollar side, US Nonfarm Payrolls data later this week is shaping up to be interesting after the big ADP miss, and that could shift the perceived timetable for Fed tapering. Ahead of that, the USD seems destined to be range-bound.”