BTMU FX Strategy Research notes that the RBNZ as expected kept rate unchanged at its monetary policy meeting and in its statement continued to express confidence in the economic growth outlook despite slightly weaker than expected Q1 real GDP growth.
"There was no change in the signal of the timing of the first rate hike but the NZD/USD was supported by the perceived indifference to the appreciation of the New Zealand dollar…
…While the lack of concern of the RBNZ is a positive for NZD, history has shown the RBNZ can quickly shift on their FX view and given that 6% gain since mid-May we would be cautious over the scope for NZD gains from here over the short-term," BTMU argues.
Source: BTMU ResearchOriginal Article
