Analysts at Morgan Stanley offer their outlook on NZD/USD, with a drop expected despite the hawkish RBNZ tilt.
“We remain bearish on NZD/USD targeting 0.66.”
“In addition to USD-positive forces, we think RBNZ pricing remains aggressive and is insufficiently pricing in risks of COVID-19 transmission in New Zealand.”
“NZD positioning is fairly balanced, contrasting with AUD positioning which is a bit more stretched to the downside, suggesting that risk/reward is relatively more attractive.”
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