Antipodean cross looks to AUD and USD for direction - ANZ

Analysts at ANZ explained that the NZD consolidated in its new range of 0.7330-0.74 last week.

Key Quotes:

"A light local calendar to start the week means the NZD will be at the mercy of USD and AUD."

"USD sentiment has remained surprisingly bearish as it decoupled from interest rate differentials."

"US monetary policy will be back in focus this week, but could be a non-event. It’s Yellen’s last with no press conference and there is likely to be a reluctance to introduce big shifts in the statement ahead of a change in Chair."

"Non-farm payrolls could be more interesting where unemployment could continue to tick down and wages rise – which will be needed to sustain consumer spending as saving rates drop."

"NZD/USD (inverse): Has broken through support, but will need confirmation that Australia’s inflation pulse isn’t as weak as NZ’s to push lower. Therefore all eyes will be on core inflation measures on Wednesday, where our Australian colleagues are broadly in line with a 0.7% q/q lift.

Support 0.9030 Resistance 0.9230"