NZD: Near-Perfect Carry-Friendly Conditions Against A Flatter OIS Curve – ING

ING FX Strategy Research notes that NZD has outperformed in the recent near-perfect carry-friendly conditions (ie, low interest rate volatility and resilient risk appetite).

“The RBNZ has been saying no thanks to a strong NZD for a while and is likely to express concern at the latest carry-fuelled rally. The central bank is likely to respond by shelving rate hike plans to 2H18; the flatter OIS curve should keep NZD upside limited, with ramped up RBNZ jawboning also tempering speculative investors in the short-term,” ING argues.

In line with this view, ING targets NZD/USD at 0.71 in 1-month and at 0.68 in 3-month

Source: ING Global Markets Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
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