NZD: Time for a bounce - ANZ

Analysts at ANZ explain that the kiwi is back on the skids again, after recovering in textbook fashion off technical support levels on Monday/Tuesday, momentum to the downside has faded a touch, and it has again bounced off the technically important 0.6840 level.

Key Quotes

“This time the big dollar can’t be blamed, as it’s on the skids too, and the key lies in the AUD, which is getting hit by a resumed sell off in iron ore and generally softer commodity prices (the CRB hit a 12mth low overnight). By contrast, NZ’s commodity prices are holding up well in USD terms (up 26%y/y) and other credentials remain enviable, and we think that portends of some sort of bounce fairly soon.”