The NZD/USD pair has held up well in the wake of the weekend’s COVID-19 developments, having remained above 0.72. Unless the crisis deepens, it is difficult to envisage weakness, according to economists at ANZ Bank.

Key quotes

“As we suspected might be the case, the market has taken a glass-half-full view to moves to L2/L3, having seen the ‘script’ before, and mindful of the Crown’s war chest that could be brought to bear should the crisis deepen.”

“Should the situation worsen, we’d expect the NZD to suffer a tad, but in the absence of bad news, we’ll remain in a mildly bullish holding pattern.”

“Support 0.7090/0.7100 Resistance 0.7250/0.7300”