NZD/USD: Fed to put Funds rate above the RBNZ’s OCR, a challenge for the kiwi – ANZ

NZD/USD remains below 0.60. Economists at ANZ Bank expect the kiwi to remain under pressure as the Federal Reserve is set to put Fed Funds rate above the RBNZ’s OCR.

Technical levels of 0.60 and 0.5940 can be quickly overcome by macroeconomic events

“The kiwi remains below the psychological 0.60 level. Support at 0.5940 (the 76.4% Fibo of the 2020/21 rally) has held so far in a textbook fashion, but these technical levels (on both sides of the current price) can be quickly overcome by macroeconomic events, and this week brings the September Fed meeting. 

“It’s a light data week locally, and that makes the Fed the singular focus, and importantly, either 75 or 100 bps will put the Fed Funds rate above the RBNZ’s OCR; that’s the NZD’s challenge.”

“Support 0.5825/0.5915/0.0.5940 Resistance 0.6160/0.6400.”