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ANZ: Today Could Be A Bumpy Rise For The NZD

NZD

ANZ note that "the NZD is consolidating here in the low 0.68s ahead of today's MPS and after earlier gains on vaccine breakthrough optimism. Equity markets have consolidated too but if we see more strength, that speaks to more NZD strength on the general bounce in risk appetite and offshore equity hedging flows. The Fed's new average inflation targeting framework means that policy will be easy for some time even with an effective vaccine, and that should be a long term positive for risk too. But today is all about the RBNZ; we expect a dovish tone, and for them to be more cautious about the vaccine, so it could be a bumpy ride."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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