"I see scope for NZD/USD dipping lower towards 0.57 on a 3 month view."
New Zealand can count itself as one of the most successful countries in the world in managing to almost eliminate Covid-19 from within its border, at least for now. However, the economic cost of its strict shutdowns is set to be high. Consequently, not only has more fiscal spending been promised in the May budget, but the market is anticipating further monetary policy adjustments at the May 13 RBNZ meeting.
NZD/USD remains at the mercy of global risk sentiment near term, with potential for upside during the next few weeks. Economic data releases over the next few months will be dire, denting sentiment further. Moreover, I expect the RBNZ to cut the OCR to -0.50% in November. There’s potential to see 0.5800 during the next few months.
New Zealand can count itself as one of the most successful countries in the world in managing to almost eliminate Covid-19 from within its border, at least for now. However, the economic cost of its strict shutdowns is set to be high. Consequently, not only has more fiscal spending been promised in the May budget, but the market is anticipating further monetary policy adjustments at the May 13 RBNZ meeting.
NZD/USD remains at the mercy of global risk sentiment near term, with potential for upside during the next few weeks. Economic data releases over the next few months will be dire, denting sentiment further. Moreover, I expect the RBNZ to cut the OCR to -0.50% in November. There’s potential to see 0.5800 during the next few months.