NZD/USD: Universally expected RBNZ pause may not do a lot for the Kiwi – ANZ

Kiwi broke below 0.60 late Friday. Economists at ANZ Bank analyze NZD/USD outlook.

USD Index may be unstoppable

The big picture remains one of USD strength, with the US Dollar Index having recovered almost all of July’s dip as bond yields rise and markets fret about for how long US interest rates will hold up. 

The DXY hasn’t made a new high, but if it becomes the high-yielder of choice or the subject of safe-haven buying, it may be unstoppable. 

This week we get the RBNZ MPS (Wed), but with a pause universally expected, that may not do a lot for the Kiwi (and flagging crosses).