Some of the headlines, including worsening tensions between the US and China and the spreading Covid-19 cases and deaths in the US and other countries, ought to be "knocking us off our perch" but are having little impact.
McIntyre said the market looks short kiwi and that many players had been expecting a pullback that hasn't happened. The currency has risen from below 55 US cents in March and near 59 cents in mid-May.
"Everyone has hedged aggressively on the way up, thinking the world is still in turmoil" and that the kiwi's strength couldn't be sustained, he said.
"There's more pain to come in the short term. We're in one of those situations where it's not making a lot of sense and it's disconnected from the fundamentals."
Reuters is reporting that the US dollar is at two-year lows against six major currencies as a result of the inability of the US to control a spike in Covid-19 infections, something that will weigh on the economy and prevent a swift recovery.
Reported US infections reached almost 4.5 million on Tuesday, more than a quarter of global infections, while the 152,320 reported deaths are about 23 per cent of the global total.
McIntyre said the market isn't expecting any change in the Fed's stance but "we might see a bit of volatility regardless."
The kiwi was trading at 92.88 Australian cents from 93.21 cents at 5pm yesterday, at 69.88 yen from 70.27 yen, 56.70 euro cents from 56.73 cents, 51.48 British pence from 51.78 pence, and 4.6576 Chinese yuan from 4.6623 yuan.
The bid-price on the two-year swap rate was at 0.1875 per cent from 0.1950 per cent yesterday while the 10-year swap was at 0.6300 per cent from 0.6930 per cent.
