NZD/USD is on the backseat amid a risk off sentiment – BBH
Source Fxstreet
NZD is underperforming amid a risk off sentiment in FX markets, BBH FX analysts report.
RBNZ has penciled-in another 75bps of easing over the next 12 months
"New Zealand’s economy recovered more than anticipated. Real GDP rose 0.7% q/q in Q4 (consensus: 0.4%, RBNZ forecast: 0.3%) after shrinking by -1.1% the previous two quarters. Higher spending by international visitors boosted growth in tourism-related industries like rental, hiring and real estate services, retail trade and accommodation."
"The RBNZ has penciled-in another 75bps of easing over the next 12 months that would see the policy rate bottom at 3.00%. The swaps market price-in higher odds of a 3.25% terminal policy rate which offers NZD support."
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The NZD has failed to breach 0.5980 resistance against the USD, but downside attempts remain limited so far.
Oracle’s stock reversed a two-day 11% decline, surging over 3% as the company is seen as a key player in enabling TikTok to continue operating in the U.S.
The US Dollar (USD) stays under modest bearish pressure early Tuesday as investors adjust their positions ahead of the Federal Reserve's critical two-day policy meeting.
Statistics Canada will publish August’s inflation figures on Tuesday.
The USD/CHF pair falls sharply to near 0.7915 during the European trading session on Tuesday.
Related Instrument
