NZDUSD has rallied higher. Nevertheless, this stays seen as a correction within the choppy downtrend for now, analysts at Credit Suisse report.

Broader negative outlook stays intact

“The recent recovery in our eyes still looks, for now at least, like a corrective countermove within the broader downtrend. Hence, our broader negative outlook stays intact, though with a move back below 0.5854 and then below 0.5600/5597 needed to turn the market on the path towards the YTD low 0.5510 and then the 2020 low at 0.5468.”

“Were we to see the broader USD top out below key levels, we would turn more cautious on NZDUSD also, with a move above 0.6059 needed to pave way to what we see as a tougher resistance at the downtrend from April at 0.6091.”