NZD/USD is below 0.59. Economists at ANZ Bank note that the pair could nosedive to the 2020 low of 0.5470 on a break under 0.5825.

Kiwi in a precarious spot

“We’ve been talking about the potential for USD strength for some time, and it’s now here with a vengeance; while we may see a few wobbles, the USD’s twin safe haven/high rates appeal is hard to deny despite us seeing fair value in the NZD well into the 0.60s.”

“A break below 0.5825 will put it in ‘clear air’ all the way down to the 2020 low of 0.5470.”