NZD/USD remains under pressure. Nonetheless, economists at Credit Suisse stay cautious of a possible mean-reversion back higher.

Break below 0.6385/68 to put further downward pressure

“NZD/USD has experienced a strong decline since the beginning of April, breaking the YTD low at 0.6528, which opens up the potential for further downside. Nonetheless, NZD/USD has had a tendency to not follow through on significant breakouts in the last 8 months and we, therefore, stay wary of a possible mean-reversion back higher.”

“From a shorter-term perspective, a break below the lows of mid-June 2021 at 0.6385/68 would put further downward pressure on the market and open the door to reach the 61.8% retracement of the 2020/21 uptrend at 0.6231 in due course.”