NZD/USD: Long-term economic damage to harm the kiwi – ANZ

NZD/USD has fallen below the 0.64 level, trading at 0.6389 as of writing. New Zealand’s outstanding management of the coronacrisis and the liquidity environment supports the kiwi but the long-term hurt to the economy paints a gloomier for the Oceanic currency, per ANZ Bank.

Key quotes

“The overall liquidity environment remains supportive of risk currencies, and New Zealand’s unique success in stamping out COVID-19 puts it in good stead too.” 

“There are significant risks during this recovery and transition phase as the market weighs up the positives against the negative long-term real economic damage that has been done, which paints a more neutral picture.”

“Support 0.6370 Resistance 0.6500”