The kiwi rally failed to break 0.70 and is lower near the 0.69 level. Economists at ANZ Bank believe that the NZD/USD could resume its advance as the dollar weakens early in the hiking cycle.

Crosscurrents remain, and much depends on how the USD fares

“There remain significant crosscurrents – Omicron doesn’t seem to be as disruptive as feared, interest rates are high but other countries are catching up, commodity prices are high but not extending, the dollar is fading but EUR and JPY weakness complicate the picture.”

“There seems little NZ-specific to drive further strength, but if the USD does weaken, as it typically does early in the hiking cycle, more NZD upside is possible.”

“Support 0.6540/0.6715 – Resistance 0.6995/0.7105/0.7225.”