NZD/USD: tough to catch a break - Westpac

Analysts at Westpac explained that it’s tough to catch a break with the NZ dollar.

Key Quotes:

"New Zealand’s positive interest rates stand out like a sore thumb on the global stage. Even with this week’s cut in the OCR and an indication of more easing
to come, markets were disappointed, pushing the NZD/USD over 1 cent higher on the day"

"Markets had expected an even more dovish shift from the RBNZ, with talk of a 50bp cut gathering momentum in the days prior to the release."

"We had viewed these expectations as being overdone, and in the end the RBNZ’s forward guidance on interest rates was broadly in line with our expectations."