NZD/USD to grind lower with China in focus – ANZ

By FXStreet FXStreet (Delhi) – Research Team at ANZ, suggests that the market remains myopically focused on China.

Key Quotes

“Following suspected intervention in China’s offshore CNH spot market, draining of CNH liquidity has driven short end funding costs in the forward market to all new highs. US equities continue to trade on a cautious tone and VIX volatility is elevated. Given risk-off trading in global markets NZD/USD may continue to grind lower. That said, the NZD is down 4.8% in 2016, the worst performing G10 currency, if risk were to stabilise we would likely see the NZD outperform.”

Expected range: 0.6490 – 0.6580
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Source:: FX Street