AUDNZD daily
Goldman Sachs notes that the New Zealand Dollar (NZD) was the worst performing currency in the G10 this past week, following a notably dovish meeting of the Reserve Bank of New Zealand (RBNZ). Although the RBNZ hiked the rate by 25bps as anticipated, the bank’s forward guidance fell short of market expectations.
Goldman Sachs recently revised its AUD and NZD forecasts to reflect greater pressure on AUD due to weaker Chinese growth and terms of trade, and less downside in NZD owing to a more hawkish RBNZ. Despite the RBNZ appearing less hawkish than initially expected, Goldman Sachs believes that AUD/NZD should remain stable at current levels, in line with their 3-month forecast.
The bank also observes a broader trend among G10 central banks, where those with faster rate passthrough, like the Riksbank and the RBNZ, appear to lean towards a more dovish policy spectrum.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.