The New Zealand Dollar could finally be due some respite from the relentless weeks-long sell-off that has now more than reversed a respectable 2018 gain for the Kiwi currency, according to strategists at Morgan Stanley, who argue that current levels are an opportunity for traders to get "tactically bullish".
The New Zealand Dollar rose across the board Monday as markets responded to an easing of tensions between the US and China, following a trade-war-related detente at the weekend, although the latest foreign exchange forecasts from analysts at Rabobank suggest it might not be long before the Kiwi currency resumes its downtrend.
The New Zealand Dollar reversed course and headed lower during the morning session Thursday as markets responded to another spike higher in US bond yields that overshadowed Prime Minister Jacinda Ardern's maiden full-year budget and has increasingly undermined the Kiwi during recent weeks.
While Sterling has come off its 2018 highs against the NZ Dollar we don't see any danger of the exchange rate slipping into a sizeable downtrend at this stage. Watch wage numbers out of the UK this week as well as the first budget from New Zealand's Labour-NZ First government.
The New Zealand Dollar fell broadly on Thursday after new Reserve Bank of New Zealand (RBNZ) governor Adrian Orr used his inaugural meeting and press conference to snuff out any last remaining, die-hard hopes of a Kiwi interest rate rise at any point in the near future.