A continued period of range trading seems likely – ANZ

NZD/USD continues to range-trade either side of 0.59. Economists at ANZ Bank analyze the pair’s outlook.

USD continues to benefit from hope for a soft landing

FX markets were looking to US CPI data this week for direction, but it didn’t shift the dial, leaving markets focusing on next week’s Fed meeting, piling more pricing risk on that event. 

EUR is struggling amid stagflation fears (it fell sharply following this week’s hike), but by contrast, the USD continues to benefit from hope for a soft landing.

Until a differentiated local theme comes along, a continued period of range trading seems likely for the Kiwi.