The New Zealand Dollar actually advanced marginally versus the US Dollar in September and was the best performing G10 currency. Economists at MUFG Bank analyze Kiwi’s outlook.
NZD holding up well but near-term risks still to the downside
The resilience of NZD in part reflected some improved optimism over the outlook for growth following the much stronger-than-expected real GDP growth in Q2. However, the breakdown of the GDP data suggests some caution over the outlook ahead.
A general election will take place on 14th October and the main opposition party, which is polling well, has promised to return the RBNZ policy mandate to inflation only and implement a more restrained fiscal stance.
Yield will help limit NZD downside for now before modest recovery takes hold as the Fed embarks on monetary easing in H1 2024.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.