NZD/USD: political developments - ANZ
For NZD/USD, analysts at ANZ explained that with a lack of data to start the week, political developments (here and abroad) will remain to focus.
"The tentative new CPTPP deal ‘feels’ better than US political issues, which mean tax overhaul is struggling to get support. Views toward a December Fed hike will be tested with the October CPI important this week. A miss on core expectations, at 1.7%, could cause some pause for thought.
The announcement by Labour to support the CPTPP (a revamped TPPA) should be taken as a positive sign – providing some support for NZD. On the other hand, the United States’ inability to pass legislation – with the current focus on a tax overhaul – is set to continue to impact USD sentiment. The Australian government losing its majority and UK uncertainties will also continue to linger.
Support 0.6920. Resistance 0.6980"