USD/CNY may have peaked

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USD/CNY may have peaked, could limit downside for AUD, NZD – ANZ

The kiwi traded lower on Wednesday, falling victim to a rally in the greenback as bond yields moved higher again. Economists at ANZ analyze the outlook for NZD/USD.

Rising U.S. bond yields had some offsetting effect.

In another quiet data week locally, with the RBNZ on pause next week, we have to consider things like the impact of New Zealand government bond (NZGB) issuance on the NZD given most of the buyers are foreigners , and tentative signs that USD/CNY may have peaked, could limit downside for AUD and NZD. So there is some offsetting effect on the rise in U.S. bond yields.

Support at 0.5750/0.5900/0.6085

Resistance at 0.6365/0.6540