NZD/USD’s firm decline stalled last week. Nevertheless, economists at Credit Suisse continue to look for a break below the YTD low at 0.5563 to prompt a move to the 2020 low at 0.5468.

Pause seen as temporary

“Though the current pause may continue in the short-term, we continue to see the risk as lower whilst below the recent price highs at .5750/59 and thus, look for a break below the YTD low at 0.5563 to eventually occur. Below here should then reassert the recent weakness and expose the low from 2020 at 0.5468, a close below here would mark a major break lower and provide a platform for further decline to 0.5250.

“Meaningful near-term resistance stays seen at 0.5750/59 and then above at the 13-day exponential average at 0.5771, which ideally holds to avoid a lengthier recovery.”