NZD/USD is now just above a key technical level. The kiwi could sustain a deep fall on a break below the 61.8% Fibonacci level of the January-April rally at 0.6723, economists at ANZ Bank report.

Fundamentally, it’s all a bit messy

“The USD usually does well into rate hikes, but starts to fade early on, but this time it’s maintaining its strength thanks to peculiarities including global geopolitics. Fundamentally then, it’s all a bit messy.”

“Technically, the NZD/USD is now at a key level (0.6723 being the 61.8% Fibo of the January-April rally). A sustained break below could see a deeper trough, but equally, if it holds, that’d likely form a short-term base. Complicated.”