NZD/USD fell sharply and only just managed to maintain a 0.59 handle. Economists at ANZ Bank analyze Kiwi’s outlook.
USD strength story is the only game in town
So much for the ‘fade USD strength’ story; instead, it’s the only game in town! While that fits with the soft-landing narrative, we do have one word of caution, and that’s to take month/quarter-end moves with a bit of a grain of salt.
Still, the Kiwi is still holding its own on many crosses, notably NZD/AUD and it has wide interest rate differentials to thank for that. Bring on next week’s RBNZ MPR, that’s the next signpost in this volatile journey.
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