RBNZ to sound dovish, neutral on NZD/USD – Morgan Stanley

Dhwani Mehta FXStreet

Analysts at Morgan Stanley offer their expectations of the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision and its impact on the kiwi dollar.

Key quotes

“We expect the RBNZ's May MPS to have a similar outcome to that seen in February: that the RBNZ will sound dovish, but continued tapering and an upward revision to the unconstrained OCR is likely to signal to the market that normalization is to continue.”

“We continue to see NZD strength on crosses, such as versus AUD and JPY, but we are neutral on NZD/USD overall...NZD/JPY looks attractive to us amid policy divergence and robust liquidity conditions.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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