Flash: NZD/USD to go lower but slower - HSBC

FXstreet.com (Barcelona) - The HSBC FX Research Team believes that "while the RBNZ’s presence in the FX market may put some negative pressure on the Kiwi, we believe that the central bank’s tightening bias should limit the extent of further NZD weakness."

HSBC thinks that the Kiwi may be exposed to further weakness in the coming months, saying "the RBNZ’s uneasiness at the strength of the Kiwi and the prospect of Fed tapering should see the NZD fall further." However, HSBC adds that "the possibility that the RBNZ will begin raising rates by year-end remains high and this should prevent any weakness from becoming substantial."