The NZD or “Kiwi” looks well supported by the Reserve Bank of New Zealand. The central bank is likely to be one of the first movers within Developed Markets to start normalising monetary policy – given New Zealand’s well-documented COVID-19 recovery so far. Terms of trade should also prop up New Zealand exports and act as a tailwind for the NZD. We would favour a ‘buy-on-dips’ approach for NZD/USD on any retracement below 0.7200.
Speaker: