NZD/AUD: U-turn risk – ANZ

AUD ended the week soft as markets navigate uncharted territory, while emergency RBNZ easing this morning saw the NZD gap lower. Defensive positioning remains appropriate given elevated volatility and the weak demand picture, according to analysts at ANZ Research.

Key quotes

“The break higher has continued, but is at risk of making a U-turn as NZ-specific factors weigh.” 

“Has held up on the ‘you can drink milk but you can’t eat iron ore’ idea, NZ having fewer COVID-19 cases and the RBNZ’s optimistic tone, but the RBNZ has cut.”

“Support 0.9665 Resistance 0.9850”