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NZD strength against the AUD driven by higher NZ/Australia rate spreads - to reverse

NZD strength against the AUD driven by higher NZ/Australia rate spreads - to reverse

A snippet from BNZ on what they expect for the AUD/NZD cross (although they refer to it the other way around).

  • recent NZD/AUD strength has been driven by higher NZ-Australia rate spreads
  • Our outlook is for NZ-Australian rate compression, with too-much tightening priced into the NZ rates curve and too-little for the Australian rates curve.
  • The market has yet to embrace this view ... but ultimately a change in sentiment on the rates outlook is expected to trigger a... Read More
Posted: Dec 20 2022, 02:22
Author Name: forexlive
Views: 111257

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