NZD: Expect ‘sell the rally’ sentiment to dominate - ANZ

In view of the analysts at ANZ, attitudes toward the Kiwi are changing and they expect ‘sell the rally’ sentiment to dominate ‘buy the dip’.

Key Quotes

“Although the USD has appreciated strongly over the past year and sits at the top end of 5-year trading ranges, the data and policy pulse suggest more upside beckons. Market expectations remain light visà-vis what we expect; the Fed can tick the box on both aspects of its mandate, and flight to safety considerations are back to the fore. Domestic credentials remain strong and need to be acknowledged, but the rate of change in NZ is flat/fading, whereas it’s picking up in the US. We continue to favour the NZD/AUD gravitating higher.”