NZD/USD: Doesn’t seem like a kiwi-supportive backdrop – ANZ

NZD/USD dropped below 0.62 as the USD comeback intensified. Economists at ANZ Bank believe that the current environment ys challenging for the kiwi.

Bond yields rise and risk appetite fades

“Inflation remains at front of mind, and US markets seem to be warming to the idea that it could be harder to tame this time around given energy market woes, dents in supply chains and tight labour markets. This is, in turn, driving a shift in bond markets, which have of late been content to assume a slowdown might miraculously drive inflation lower; and that, in turn, is driving the USD up.”

“Support 0.6060/0.6290 Resistance 0.6575/0.6660.”