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NZD At New Highs as RBNZ Hint Hikes to Come

  • NZD trades on solid footing, with many sell-side analysts pointing to a hawkish tilt to the RBNZ's policy statement overnight. The new OCR policy path projections now imply rate hikes from Q3 2022, with inflation communications also tweaked. As a result, NZD/USD rallied well, topping the $0.73 level in short order and hitting the best levels since late February in the process.
  • At the other end of the table, JPY trades poorly for a second session, although USD/JPY has so far been unable to mount a challenge on the Tuesday high and 50-dma at 109.10.
  • AUD is seeing some spillover buying from the NZD rally, while SEK and NOK are retracing slightly lower.
  • There are no material economic releases Wednesday, keeping focus on central bank policy for now. ECB's Villeroy, Fed's Quarles and BoC's Lane make up the speaker slate.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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