NZD/USD to see more range-trading and the potential for a flare-up in volatility – ANZ

The kiwi is lower again. Economists at ANZ Bank believe that the NZD/USD pair is set to experience more range-trading and possibly a spike in volatility.

USD continues to be well supported

“The USD continues to be well supported despite market participants’ hankering for the global recession narrative. In the context of a safe-haven or ‘risk-off’ vibe, further USD strength can’t be ruled out, despite higher rates here and the RBNZ being well positioned to tackle inflation.”

“It’s hard to take a high-conviction view on NZD direction; instead we think it makes sense to expect more range-trading and the potential for a flare-up in volatility.”