NZD/USD is holding steady above 0.70. Domestic sentiment looks like it is improving as Delta cases fall, but month-end balancing could see selling, economists at ANZ Bank appraise.
End-of-month flows to rock the kiwi
“NZD/USD may become pressured into month-end as fund managers rebalance away from USD (given the outperformance of major US equity indices). However, the NZX50 was one of the few indices to outperform both the S&P500 and the Nasdaq, all else equal that points to potential NZD selling into month-end.”
“Going the other way, yesterday’s drop in Delta cases was viewed positively, but as the PM noted, Sunday testing can be lower. That being the case, results for today and the next few days will dictate where domestic sentiment ends up, but it seems to be drifting back towards ‘glass-half-full’.”