NZD/USD: Commodity prices weighing on the kiwi – Westpac

Commodity prices remain at risk, weighing on NZD/USD, although the weaker USD will obscure the true impact, in the opinion of strategists at Westpac Institutional Bank.   

Key quotes

“Although technically stretched, NZD/USD could have another go at breaking below 0.6200 during the week ahead if pandemic fears remain high.” 

“Commodities have fared poorly during the pandemic, clearly weighing on NZD/USD, although the sliding USD has provided some support.”

“The RBNZ today reiterated, via an interview with Assistant Governor Hawkesby, that government action was far more important than monetary policy action.”