Our earlier concerns regarding Q3 economic data from NZ have been confirmed by the dismal readings for employment and retail sales. According to the team, “There’s more to come, notably from GDP on 20 Dec, so markets are likely to remain nervy and of a bond-bullish disposition. We expect 2.50% for the 2yr swap will be tested this week, but any lower will require fresh news raising the likelihood the RBNZ will cut the OCR.”
“In regards to the NZ curve, we expect a string of weak NZ data over the next five weeks to encourage pricing of RBNZ easing, depressing the front end of the curve. If that is matched by a stable off shore environment, mild steepening towards 110bp should result.” they warn.
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 securities. 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 Forex 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.