A brighter outlook for the global economy amidst easing trade war fears between the U.S. and China should lead to an appreciation of the New Zealand Dollar over the remainder of 2019 say BNZ.
New Zealand exporters should consider 'dropping the hedge' on NZD/USD exposure now interest rates are no longer in their favour and the 'free lunch' premium they used to enjoy on forward rates has inverted, says BNZ Bank.
GBP/NZD tipped to rise as Brexit risk unwinds and undervalued Pound catches up.
Analysts at New Zealand’s BNZ tell corporate clients that the Pound is likely to weaken against the New Zealand Dollar through the duration of 2018.
The NZ Dollar is seen benefiting on a combination of improved global investor sentiment and higher commodity prices.
The risks are skewed to further downside in the pair according to analysis from BNZ bank, however, a technical analysis of the charts does not confirm this bearish view in the very short-term.
The New Zealand dollar could strengthen versus key counterparts as the outlook for its diverse export portfolio shows overall improvement.
New Zealand’s BNZ have upped their forecasts for the New Zealand dollar as an RBNZ hamstrung on high interest rates will be unable to prompt the kind of weakness analysts had previously expected.
New Zealand dollar suffering at the start of the new month as dairy price data disappoints, however the strength should argue BNZ.
BNZ say despite recent outperformance they are maintaining their forecasts for a weaker New Zealand dollar in 2016.
The New Zealand dollar has surged against the pound sterling and other majors as currency markets adjust to the idea that further interest rate cuts at the Bank of New Zealand will be unlikely.N