NZD/USD: The medium-term outlook is complicated – ANZ

The kiwi is lower and trades below the 0.65 level. Economists at ANZ Bank note that the outlook remains complicated. 

Volatility and a period of range trading

“The medium-term outlook is complicated: NZ enjoys higher interest rates, but that’s offset by growing fears of a hard landing (here and, to complicate things, in the US too), and blockages in the FX forwards market that are suppressing carry. It all speaks to volatility and a period of range trading rather than the need to radically adjust levels.”

“Support 0.6230/0.6410 Resistance 0.6545/0.6625/0.6840.”