Kiwi Plunges More Than 140 pips!

Huge sell-off in kiwi dollar unlikely to stay, buy NZD/USD at dips?

New Zealand dollar largely sold off after Jacinda Ardern became New Zealand’s youngest prime minister in more than 150 years. We expect the sell-off to be short-term.

• For past political events such as Brexit and US election, pound and dollar dropped initially, but recovered quickly after that.

• Moves in kiwi today is not much different from the pound and dollar moves mentioned above. We do not think RBNZ will adjust their monetary policy based on the news today.

• On the technical side, we think NZD/USD is likely to be supported at 0.70 for now.