NZD/USD: Dip under 0.60 brings 0.5940 and 0.5915 into focus – ANZ

NZD/USD has now convincingly broken below key support at 0.60. Economists at ANZ Bank expect the pair to test next support levels at 0.5940 and 0.5915.

Global themes/factors remain dominant ahead of next week’s Fed meeting 

“Kiwi has made a more convincing break below 0.60. The more substantive move should quell any debate about whether the 0.60 level has been sustainably breached or not, and technically, it brings 0.5940 (the 76.4% Fibo of the 2020/21 rally) and 0.5915 (the May 2020 low after the April 2020 bounce) into focus.” 

“FX sentiment remains USD/globally driven, and the NZD struggled to garner any support from GDP data yesterday. Surprising as that was, given the size of the miss, what that tells you is that the market will be sensitive to next week’s Fed ‘75 or 100 bps’ rate hike decision.”