NZD/USD: 0.5904 support now very close and “pulling” like gravity – ANZ

Kiwi still has a 0.59 handle. Economists at ANZ Bank analyze NZD/USD outlook.

USD strength and slower China growth remain the main FX global themes

USD strength and higher bond yields remain the key themes/drivers, and the DXY has now completely recouped its July losses (when everyone sold it on the premise that the Fed was done, and the US might roll over). Instead, US data remains resilient and softer Chinese growth raises questions about AU and NZ export demand. 

Near term we remain focussed on technicals, with 0.5904 support (the 61.8% Fibo of the 2022 rally from 0.5512 to 0.6538) now very close, and ‘pulling’ like gravity.