Snapshot: NZD/USD is trading at 0.5977, up 0.74% on the session, boosted by growing expectations of a rate hike by the RBNZ. Governor Breman’s recent comments reinforced the view that interest rates may need to increase amid persistent inflationary pressures. No key New Zealand data is slated for release ahead of the NY close.
- Watch for resistance around the 0.5980 intraday high; a break above could open the door to further gains.
- Risk: A stronger-than-expected DXY above the 99.15 intraday high could temper the Kiwi’s advance.
Bias into NY: Bullish on NZD/USD while markets continue to price in an 80% chance of a July rate hike, targeting a move towards 0.6000. Firmer risk sentiment, reflected in the Nikkei’s +1.79% rally and FTSE’s +0.61% gain, is providing additional support.