NZD/USD consolidates after the recent decline post-RBNZ meeting. Economists at OCBC Bank analyze the pair’s outlook.
Some unwinding of Kiwi longs may still be underway
For now, rates are likely to remain at restrictive level for sustained period to meet inflation objective.
Some unwinding of Kiwi longs may still be underway but after the washout, NZD remains attractive, given yield appeal as RBNZ is likely to be one of the last amongst DM central banks to cut rates.
Some degree of policy divergence with the Fed is possible in 2H 2024 and eventual stabilisation in China economy should also be supportive of NZD
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.