Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway said on Friday, “the OCR is expected to peak around mid-2023 at 5.50%”.
“Spending by households is higher than expected.”
“As interest rates rise, I expect consumption to slow.”
“We are seeing signs that demand is beginning to soften.”
“Higher interest rates are still required to cool the economy.”
“Not aware of any changes proposed for LVR lending limits.”
Despite some encouraging comments from the RBNZ Chief Economist, NZD/USD remains under intense selling pressure at around 0.6145, as of writing. Disappointing New Zealand Retail Sales data and Russia-Ukraine risks continue to sap investors' confidence. The spot is down 0.26% on the day.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD continues to push higher toward 1.0800 on broad USD weakness
EUR/USD preserves its bullish momentum and continues to push higher toward 1.0800 on Tuesday. The positive shift witnessed in risk sentiment doesn't allow the US Dollar to find demand and helps the pair push higher. Existing Home Sales will be featured in the US economic docket.
GBP/USD recovers from session lows, trades above 1.2250
GBP/USD has gained traction and recovered above 1.2250 on renewed US Dollar weakness on Tuesday. Ahead of the Fed's and the BOE's policy announcements, however, the pair seems to be having a difficult time gathering bullish momentum.
Gold drops below $1,970 as US yields push higher
Gold price extended its daily slide and declined below $1,970. The benchmark 10-year US Treasury bond yield is up nearly 2% on the day above 3.5% on improving risk mood, forcing XAU/USD to stay under bearish pressure ahead of Fed's policy decisions on Wednesday.
If Fed’s money printer goes brrr… will Bitcoin price hit $1 million?
Bitcoin has taken front and center stage after it restarted its 2023 rally in March. This resurgence of buying pressure pushed BTC to nine-month highs.
FX thoughts for the week
Do central banks face a conflict between their inflation mandate and financial stability? The markets are still grappling with this question and confidence in the financial sector has not fully recovered. For now, central banks are responding with a conditional no.