NZD/USD has had a tough start to the week. Economists at ANZ Bank analyze Kiwi’s outlook.
Falling interest rates weighed on the Antipodean currencies
Falling interest rates weighed on the Antipodean currencies amid thin liquidity conditions, with the US market closed for a public holiday.
Outside overarching global themes like energy prices, conflict and China growth, the main local theme remains the outlook for RBNZ policy, with markets eager to embrace soft data and of a mind to ignore more robust data, all of which is driving interest rates lower as markets brace for more cuts (with 103 bps of cuts now priced in over 2024). All of that’s weighing on the Kiwi.
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