NZD/USD popped a tad higher on Monday. Nonetheless, economists at ANZ Bank believe that the outlook for the kiwi remains bleak.

It looks more like a USD correction than a peak in the USD

“Having drifted off a fresh high, the USD move looks more like a correction than a direction shift, especially with the global growth outlook souring and safe-haven appeal a factor again.”

“Apart from higher interest rates, the advantage of which is narrowing rapidly, the NZD’s appeal is waning as the cycle matures.”