NZD: Not Expecting Any Particular Surprise From RBNZ; Staying Bullish NZD/USD For 0.75 – Citi

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What is the outlook for NZD/USD?

Here is their view, courtesy of eFXdata:

Citi discusses its expectations for today’s RBNZ policy meeting.

The RBNZ is expected to leave its monetary policy unchanged at the May 26 monetary policy meeting this week, keeping the OCR at 0.25%. We don’t expect any particular surprise, but the Bank is likely to reiterate its hawkish stance towards elevated housing prices,” Citi notes.

Bigger picture, we maintain a constructive view for the pair, while supposing the overall USD weakness to continue in the medium term. Our model analysis indicates that NZD is becoming undervalued, and we expect the pair to climb to 0.75 or even higher later this year,” Citi adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.