NZD/USD to struggle to post further gains – ANZ

NZD/USD ended the week stronger, with the USD under pressure as markets eye a patient approach from the Fed despite US jobs strength. Economists at ANZ Bank expect the kiwi to struggle to see further gains as the economy stalls.

US NFP rose more than expected

“Stronger US jobs data did little to alter market participants’ view that the Fed is likely to remain patient, and that there is still a lot of water to flow under the proverbial bridge before the Fed actually hikes rates, and that weighed on the USD.” 

“We have sympathy with the view that the best is behind us insofar as NZ data surprises go, and the Delta situation will clearly get worse before it gets better. That may not drive the NZD lower, at least while the RBNZ is hiking, but it may cap its topside potential.”

“Support 0.6860/0.6900 – Resistance 0.7215/0.7310”