NZD/USD: failures at 0.6950 level open 0.6820? - ANZ

Analysts at ANZ explained that the NZD/USD attempted, but failed, to break above the 0.6950 level, with a stronger USD and softer commodity price performance (for dairy but more generally as well) weighing. 

Key Quotes:

"We expect the RBNZ to still be somewhat cautious tomorrow, perhaps disappointing a market looking for a slightly more hawkish tone. But downside moves in kiwi should be limited.

Yesterday was a day of (at least partial) reversal for the local bond market after the dramatic response to the postponement of NZDMO’s April 2029 bond syndication. A bias to steepen the curve could remain, although markets will be reluctant to push things too far ahead of the RBNZ decision.

In many ways it was a mirror-image of yesterday, with commodity currencies underperforming overnight, seeing resistance levels in NZD/USD hold. We expect the RBNZ to still be somewhat cautious tomorrow, which could perhaps disappoint a market that is arguably looking for a slightly more hawkish tone. But we still believe the downside in kiwi will be reasonably supported for now. Support 0.6820 Resistance 0.6980"