NZD/USD: Break of 0.6410 risks a move to 0.6335 – ANZ

NZD/USD has neared the 0.6410 mark. A break below here would open up additional losses toward 0.6335, economists at ANZ Bank report.

USD strength has had a tendency to fade fairly early on in past tightening cycles

“Kiwi is now on support at 0.6410 (the 123.6% Fibo extension of the retracement of the January-April rally). From a technical perspective, a break of 0.6410 risks a move to 0.6335, but let’s see how sentiment hold up.” 

“If the Fed does frame near-term aggressive hikes as likely to limit the terminal rate, that could slow the USD’s ascent or turn it around. Indeed, USD strength has had a tendency to fade fairly early on in past tightening cycles.”

“Support 0.6280/0.6335/0.6410.”

“Resistance 0.6530/0.6650.”