The Kiwi ended the week higher, back above 0.59, but strength may fade as China ‘unswervingly’ doubles down on its zero-COVID policy, economists at ANZ Bank report.

NZD to continue dancing to a global vibe

“US jobs data on Friday was generally strong (jobs and wages beat expectations even if unemployment rose and participation fell) but it was growing expectations that China might soon begin to relax COVID restrictions that helped sentiment along. But China has since rejected the idea, saying that it will ‘unswervingly’ stick with restrictions for now. That of course brings with it the prospect of a potential re-adjustment as markets gradually re-open this week. Things are thus volatile, reactive and 'globally fluid'.” 

“NZ inflation expectations and food price data this week will be interesting, but it seems reasonable to expect the NZD to continue dancing to a global vibe.”

“Support 0.5510/0.5665 Resistance 0.5940/0.6000/0.6075”