NZD/USD: Strong domestic data and RBA action to lift the kiwi

The kiwi continued tumbling on Friday and closed just on support at 0.6540 (the 50% Fibonacci retracement of the entire up-move from March 2020). However, the New Zealand dollar could get a helping hand from data and the Reserve Bank of Australia (RBA) this week, economists at ANZ Bank report.

NZD/USD remains above key support at 0.6540

NZD/USD could be in for some consolidation or even a bit of a bounce given the reversal from highs in US bond yields (which was one of the things that gave the USD legs last week), and tentative signs of stability in correlated risk assets like US equities, and with broad commodity indices still buoyant.”

“The kiwi will benefit if HLFS data later this week is strong, and if RBA action tomorrow firms the AUD.”

“Support 0.6470/0.6500/0.6540 – Resistance 0.6700/0.6995.”