NZD/USD is at the day’s, the week’s, and the year’s lows this morning as global market turmoil continues. The break below key support at 0.6230 as the USD powers ahead amid the ongoing global market turmoil is a negative technical development, economists at ANZ Bank report.
Hard to see markets shying away from the USD’s safe-haven appeal
“One notable aspect of the turmoil has been lower bond yields, with the US 10yr having touched 3.20% on Monday. If the ramifications of volatility/tumbling asset prices become that significant, it’s hard to see markets shying away from the USD’s safe-haven appeal any time soon.”
“Kiwi’s break of 0.6230 (the 61.8% Fibo of the 2020/21 rally off COVID-19 lows) is a negative technical development.”
“Support 0.5940/0.6100/0.6200 Resistance 0.6465/0.6545”
