NZD/USD: The market to fade the RBNZ move – ANZ

NZD/USD has struggled to sustain breaks above 0.6150 and analysts at ANZ Bank don’t expect a sustained break higher this week either.

Key quotes

“We do see some risk that the NZD will spike higher if the RBNZ maintains their earlier guidance that the OCR will remain at 0.25% for at least the next 12 months. However, we’d characterise that as a knee-jerk reaction that would likely prove short-lived.”

“We are also mindful that NZD price action over the past few weeks has shown that it remains sensitive to risk sentiment, and given our caution with regard to the apparent disconnect between the economic outlook and asset prices, we still see NZD strength as being on borrowed time.”