The New Zealand Dollar suffered from concerns about trade relations and dropped. What’s next?
Here is their view, courtesy of eFXdata:
ANZ discusses NZD outlook around next week’s NZ Q2 inflation data and thinks that in the very near-term, with recent data showing the market remains short, there may be more room for another bounce.
However, if the near-term data flow continues to undershoot expectations, and given risk sentiment is vulnerable, there is no reason why the NZD can’t remain under pressure even with stretched positioning.
Little support should come from Q2 CPI where our economists see risks as skewed to the downside,” ANZ argues.
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