NZD/USD is in the background in the middle of a feeling of risk aversion – BBH

The NZD is low performance in the middle of a feeling of risk aversion in foreign exchange markets, BBH FX analysts report.

The RBNZ has planned another 75 basic points of relaxation in the next 12 months

“New Zealand economy recovered more than anticipated. The real GDP grew by 0.7% quarterly in the fourth quarter (consensus: 0.4%, prognosis of the RBNZ: 0.3%) after contracting a -1.1% in the two previous quarter Retail and accommodation. ”

“The RBNZ has planned another 75 basic points of relaxation in the next 12 months that would see the policy rate to reach a minimum of 3.00%. The swap market incorporates greater probabilities of a 3.25% terminal policy rate that offers support to the NZD.”

Source: Fx Street

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