NZD/USD has broken lower. Economists at ANZ Bank see an ominous outlook for the kiwi.

Break out of the ‘bearish pennant’ now confirmed

“NZD trading ranges have become tighter and tighter over the past week or so, and the daily move lower looks ominous from a technical perspective, with a break out of the ‘bearish pennant’ now confirmed.”

“Irrespective of technicals, the big story is (as it has been for a while), the USD’s refusal to budge from lofty levels despite fears that Fed tightening will slow the US economy.” 

“We get local confidence data later this week, but both business and consumer sentiment have already tanked, and there doesn’t seem to be a lot for the NZD to cheer about.”