NZD/USD: A plunge to 0.6230 would be a disaster – ANZ

The kiwi continues to soften as commodity currencies/risk assets get whacked on global growth concerns. Economists at ANZ Bank note that NZD/USD is at risk of suffering a fall to the 0.6230 mark.

Market fears of a deeper correction lower continue to percolate

“Weaker growth and high inflation remain the primary concerns and their impact has been bluntly but savagely felt across asset markets and commodities, with oil prices sinking despite Russia not backing down on its invasion of Ukraine thanks to softening resolve on sanctions by the European Union, and Saudi Arabia cutting prices.”

“As time goes on, market fears of a deeper correction lower continue to percolate; that’s weighing on sentiment.”

“A move to 0.6230 (61.8% Fibo of the 2020/21 0.5470/0.7465 rally) would be a disaster.”

“Support 0.5940/0.6230 Resistance 0.6465/0.6545/0.6700”