The Kiwi is higher as the USD comes under pressure under the weight of falling rates and recession fears. Economists at ANZ Bank expect ongoing volatility.
NZ considerations relegated to the background
“Bond markets have taken the view that the Fed will hike just once more, and then start cutting by September, presumably on the view that confidence and spending will hit a brick wall. That’s possible, but of course, the inflation starting point is problematic.”
“The point, there are a lot of ifs and buts, and more volatility seems likely into CPI data tonight.”
“NZ considerations have been well and truly relegated to the background, and this is the USD show.” “Positioning, and the need to be nimble, are likely to dominate the economics for now.”