The kiwi continued its march higher into the end of the week, closing the New York session at highs for the week just shy of 0.7075. Higher interest rates and a weaker USD are set to propel the NZD/USD pair, economists at ANZ Bank report.

Improved technical picture

“A good chunk of the strength appears simply to be USD weakness, but NZ interest rates are also rising as markets start to question whether the OCR might just keep rising as inflation fears percolate. The implications of that for the domestic economy aren’t necessarily great given high levels of debt, but for now, markets are trading the NZD like all other late-cycle assets, where buyers remain the dominant force.” 

“Technically, the picture is certainly way more upbeat than it was a week ago.”

“Support 0.6805/0.6860 – Resistance 0.7170/0.7215/0.7310”