NZD: Turning point is looking near - ANZ

Research Team at ANZ, suggests that while the NZD looks extended around current levels valuation-wise (TWI 77), sell signals are absent.

Key Quotes

“Commodities have bounced, domestic data is strong, risk appetites are stable and the market is coy about front-running the RBNZ too far with rate cuts – and the Fed with hikes. We expect that to change from a number of sides in a couple of months; less pristine domestic data and firmer expectations towards the Fed. So while we retain a supportive NZD view, it is tempered with an acknowledgement that a turning point is looking near.”