NZDUSD: Consolidatory mood for the next few days/weeks – ANZ
|The USD slumped following softer US Consumer Price Index (CPI) data, which sent Kiwi sharply higher. Economists at ANZ Bank now expect the NZDUSD to stabilize in the next few days/weeks.
Falling local interest rates might slow further NZD progress a touch
“The US Dollar slumped sharply lower after the release of much softer than expected US CPI data. The data were certainly a relief to markets, and the repricing we have seen is entirely appropriate. However, we’re not out of the woods yet, and US markets are still pricing in cuts from June, and if these get priced out, that could slow the USD’s adjustment.”
“Local interest rates will also fall today, and that might slow further NZD progress a touch, and leave markets in more of a consolidatory mood for the next few days/weeks.”
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