NZD/USD is treading water ahead of tomorrow’s Reserve Bank of New Zealand (RBNZ). The outlook for carry is the key focus, economists at ANZ Bank report.

Most are calling for a higher OCR

“Kiwi seems to be mostly about carry now that some short-end rates are around 6%, which is world-beating.”

“With genuinely expansionary forces (migration/fiscal) behind the reasons most are calling for a higher OCR, higher rates should be NZD-beneficial, twin deficits (fiscal/trade) cast a dark shadow over the background.”

“Support 0.5750/0.5900/0.6085 Resistance 0.6365/0.6540”