ANZ Flag Tech Worry In NZD/USD

ANZ note that “the Kiwi picked itself up off floor on Friday as risk assets bounced. While it recovered ~40 pips from the low, it still closed below $0.62. That was not just another record low close for 2022, but it represented a clear break of $0.6230 (first breached on Thursday), which is the 61.8% Fibo of the 2020/21 move from $0.5470 to $0.7463. That’s quite a worrying sign from a technical perspective, especially with the USD DXY holding up despite growing fears of a U.S. recession. This is another big week for U.S. data (Fed minutes, ISM services, payrolls) so it’ll likely be another week where global events and technicals dominate, but next week’s RBNZ MPR will bring the focus back onshore (hopefully).”