NZD/USD: RBNZ will not let NZD appreciation – ANZ

NZD strength is unhelpful at this time. NZ’s unfamiliarity with unconventional policy is likely contributing to the market underestimating the size of the QE that might be coming, according to analysts at ANZ Research. 

Key quotes

“NZD/USD has rallied a touch more overnight and that’s the near term direction ahead of and into today’s likely massive fiscal announcement aimed at supporting the economy.” 

“We see strength as ultimately short-lived, with global markets still in turmoil and bond yields lagging, massive QE is coming and the RBNZ won’t likely be comfortable letting the NZD appreciate.”

“Support 0.6000 Resistance 0.6150”