Comments from MS on the New Zealand dollar, analysts saying
- We remain bearish on NZD/USD targeting 0.66.
- In addition to USD-positive forces, we think RBNZ pricing remains aggressive and is insufficiently pricing in risks of COVID-19 transmission in New Zealand
- NZD positioning is fairly balanced, contrasting with AUD positioning which is a bit more stretched to the downside, suggesting that risk/reward is relatively more attractive
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Consensus expectations are for a Reserve Bank of New Zealand rate hike of 25bps on August 18.
