NZD/USD has additional support from RBNZ as OCR hikes are still on the table – ANZ

The NZD/USD pair discards the previous upside momentum and trades lower on Thursday. However, the kiwi now has support from rising OCR expectations, economists at ANZ Bank brief.

Probability of a rate hike in October rising to around 90%

“Local sentiment toward what the world looks like after Delta is very much glass-half-full.”

“Hawkish comments by an RBNZ official on Wednesday have seen the market jump to price in ~90% odds of a hike by October, and that should help support the carry equation too.”

“But upbeat as it all sounds, we still have to take it one day at a time, as NZ is not yet out of the woods with Delta.”

“Support 0.6760/0.6800 Resistance 0.7030/0.7100/0.7170”