NZD/USD made another cycle low. Economists at ANZ Bank analyze the pair’s outlook.
FX markets remain very USD-centric
FX markets remain very USD-centric and while pondering local factors and target levels, we think it pays to keep in mind that this is all a dollar story and where that leaves the Kiwi is very secondary.
US 10-year bond yields haven’t quite hit 5% but they’re high, and we’re still worried about the upside risk to the USD, especially as Fed Chair Jerome Powell has been very open-minded in admitting that the neutral US policy rate could be higher and that we’re headed for higher inflation. can enter time
Lots to ponder, but stepping back, NZD price action (lower lows and lower highs) is ugly.
