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Analysts at ANZ suggest that the theme around the upcoming domestic data for NZ economy is even more pertinent for the NZD.

Key Quotes

“While it is interesting that the NZD did not really benefit on the back of the better risk environment of late, and there are a number of themes that leave us cautious (Italian developments, Brexit, US-China tensions etc), we do think the NZD would be vulnerable to a squeeze higher if the domestic data were to show signs of stability or even improvement, seeing investors grow impatient that the domestic economic picture is not accelerating the discussion around RBNZ rate cuts (which remains a highly unique situation for the RBNZ within the G10). That said, we retain a bearish medium-term bias.”