The New Zealand Dollar's selloff has gone far enough, say strategists at HSBC, who close a sell recommendation.
In our previous edition of the Week Ahead Forecast, we opined that the Pound to the New Zealand Dollar was due to a pullback from notably overbought conditions.
The New Zealand Dollar can stay under pressure if the odds for an August interest rate cut at the Reserve Bank of New Zealand (RBNZ) continue to rise.
There is another, potentially even more potent force at play: the unwind of the carry trade as the Japanese Yen recovers from multi-decade lows.
- New Zealand Dollar Selling Off on Rising Rate Cut Odds and Concerns Over China
- Pound to New Zealand Dollar Week Ahead Forecast: Heavily Overbought
- New Zealand Dollar Trades Higher on Non-tradeables Inflation Surprise
- Pound to New Zealand Dollar Week Ahead Forecast: Heavily Overbought into UK Data Risk