A note from ANZ in New Zealand on what they expect for the NZD.
This in summary:
- The Kiwi has now made a convincing break below the key psychological and technical 0.60 level
- While much of the poor performance of the NZD/USD has been a function of USD strength, the Kiwi is also losing ground on crosses as EUR and GBP rebound off lows.
- Markets are factoring in military gains by Ukraine and putting UK political uncertainty behind them, and the AUD is rising to the fore as the preferred Antipodean currency on the perception that the Australian economy is in better shape than New Zealand.
- Markets continue to favour the USD, and it’s difficult to stand in the way of that for the time being.
On the RBNZ, ANZ:
- see the OCR peaking at 4.75% (previously 4%)
- with 25bp hikes added to our profile in February, April, and May next year
This article was originally published by Forexlive.com. Read the original article here.