NZD/USD: Coronavirus outbreaks add weight to the downside – ANZ

The kiwi advances 0.18% while taking the bids around 0.6430 but the mood is turning for now, pointing to near-term downside as coronavirus updates show outbreaks in different parts of the world. Economists at ANZ Bank sets the NZD/USD fair value at 0.65 though the risks are slightly skewed to the downside. 

Key quotes

“Risk-off sentiments look to have regained the upper hand as markets start to fret about fresh virus outbreaks/second waves, caution on the part of Fed speakers, and the slowing pace of global QE. New imported virus cases here don’t help the tone; nor does Victoria’s decision to ratchet up restrictions. None of this speaks to an imminent collapse in the Kiwi, but the market seems to have more of an ear out for negative themes.”

“Fair value is 0.65; strategically we’re neutral with risks in both directions, but the scales possibly tipped a tad just now.”

“Support 0.6370 Resistance 0.6500”