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ANZ: NZD Well Supported On Dips

NZD

ANZ note that "FX volatility has picked up over the past 24 hours. NZD/USD has traversed a circa 50bp range since making a high early yesterday evening, but as in recent episodes of weakness, it has been well bid on dips. We have upgraded our NZD forecasts and now see it appreciating gradually to 0.74 over 2021. It's mostly a USD weakness story, fuelled by improved global growth, easy monetary conditions, excess liquidity, the Fed remaining behind the curve, and an element of USD DXY over-valuation. Locally, as we noted yesterday, NZ is well positioned to bridge the gap to a vaccine, and commodities are rallying, which all helps."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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