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Back Fundamental analysis
NZD/USD: Two Faces of the Economy
The New Zealand dollar fell after
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The New Zealand dollar fell after what appeared to be a hawkish Reserve Bank of New Zealand decision to raise the rate by 25 bp last week. The reason is banal — the market priced a much more aggressive path of hikes stretching into 2027 than the RBNZ's published forecast ultimately showed.Now the central bank expects the peak rate to reach only 3.28% by 2029. The cross AUD/NZD rose 1.07%, hitting highs not seen since 2013. Leading banks' forecasts diverge:
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