NZD: Surprise strength against the USD - BNZ

Stephen Toplis, Head of Research at BNZ, points out that the New Zealand Dollar has surprised with its strength, especially against the USD.

Key Quotes

“Rather than reflecting anything to do with New Zealand this has largely been the result of a string of weaker than expected data out of the US, reduced expectations for fiscal stimulus as the Trump Government fails to deliver, and reduced expectations for Fed tightening. Stronger New Zealand commodity prices would have helped at the margin. We still believe the NZD will weaken through to the end of the year as the Fed delivers on its tightening cycle and US indicators improve. Weakness against the EUR is also expected. Positive relative economic and commodity performance should deliver some NZD appreciation against the AUD.”