NZD/USD: Fed to fuel risk appetite, kiwi to stretch rise – ANZ

NZD/USD is back above 0.65 this morning and analysts at ANZ Bank believe the kiwi is going to march higher as the Fed is set to continue supporting the economy.

Read: NZD/USD looks firm and targets the 0.6630 region – UOB

Key quotes

“We do see scope for an extended pop higher. Given where US inflation and unemployment sit (and are going), despite payroll data being better than expected, in level terms it’s still dire and miles from the Fed’s mandated targets, so they have no choice to keep the pedal to the metal. That being the case, tomorrow’s FOMC will likely only further fuel risk appetite.” 

“Of course the RBNZ can’t sit and watch the NZD go up ad infinitum, but that’s a story for later.”

“Support 0.6370/6500 Resistance 0.6765”