NZDUSD
The RBNZ remains in a situation where they are gently moving away from negative interest rates. You can catch up where the RBNZ are at here by reading my latest central bank piece for December and looking at the RBNZ.This has resulted in NZ 10 Y bond yields spiking higher. Furthermore, the prospect of both a Biden Presidency and a global vaccine means that pro-cyclical currencies like the AUD and NZD should gain on expectations of a return to global growth. That trend has been bubbling away for some time, but has accelerated in November.
The USD is entering a historically weak time of the year where the USD tends to weaken. Check out the historical data here.So it is perhaps unsurprising that the seasonals for the NZDUSD pair tend towards strength more times than weakness.
So this should mean that the NZDUSD is supported into 2021 and this could be a good time to benefit from growth expectations. Look for buyers on dips over the next few days. Any very negative sentiment would change that.
