NZD/USD may struggle to move higher with resistance at 0.6390 – Citi NZDUSD AUDNZD RBNZ Banks
Economists at Citi analyze the NZD/USD and AUD/NZD pairs after the Reserve Bank of New Zealand 50 bps hike suprise.“Post the surprise 50 bps hike by RBNZ, markets are currently pricing in around +25 bps by the July RBNZ meet, which would bring OCR to theguidance for terminal rate of 5.5% at the February MPS. However, we think NZD/USD may struggle to move higher with resistance at 0.6390 , unless we see a strong print at the April 20 Q1 CPI which supports the case for a higher terminal rate.
“The technical picture could lend weight to a lower AUD/NZD as we are on track to close below strong AUD/NZD support at 1.0617-1.0612 . If we see a weekly close below this level, we would complete a bearish outside week , which suggests an extension of the move, lower towards 1.0471.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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