FXstreet.com (Barcelona) - “Assuming new RBNZ governor Wheeler doesn’t deliver a dovish surprise, the kiwi should test 0.8265, perhaps even up towards the mark of 0.8355 in the short-term, on the growing optimism on Asia.” writes the Westpac Strategy Team.
In addition, the NZ swap yields are currently under the influence of both domestic (negative) and offshore (positive) factors. “Overall, we target 2.72% for the 2yr swap and 3.80%+ for the 10yr.” they note.
Finally, the NZ curve’s momentum has crossed over from negative to positive as a result of the weak NZ CPI plus higher offshore core yields. “As such, we see additional scope for the 2-10yr swap curve to reach 120bp during the week ahead.” the team predicts.
In addition, the NZ swap yields are currently under the influence of both domestic (negative) and offshore (positive) factors. “Overall, we target 2.72% for the 2yr swap and 3.80%+ for the 10yr.” they note.
Finally, the NZ curve’s momentum has crossed over from negative to positive as a result of the weak NZ CPI plus higher offshore core yields. “As such, we see additional scope for the 2-10yr swap curve to reach 120bp during the week ahead.” the team predicts.
