NZD/USD to test key resistance at 0.6250 on hawkish RBNZ – Scotiabank
|The NZD is the top performer among the majors in the session ahead of the Reserve Bank of New Zealand (RBNZ) meeting. Hawkish guidance will lift NZD/USD to 0.6250, according to economists at Scotiabank.
The RBNZ is expected to hike rates
“Some 70% of the Bloomberg survey, and all the local banks who participate in the poll, expect the RBNZ to raise its Cash Rate 75 bps to 4.25%. OIS pricing is not fully onside, however; swaps are pricing in around 86% risk of a 3/4 point hike.”
“Hawkish guidance (markets are pricing in a Cash Rate near 5.25% by mid-2023) will lift the NZD to test key resistance at 0.6250.”
See – RBNZ Preview: Forecasts from seven major banks, going big on the OCR
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.