NZD/USD hit a fresh low for the year. In the opinion of economists at ANZ Bank, it is hard to go against the USD’s momentum.

Markets remain highly focussed on offshore factors

“The US Dollar Index hit a new high for the cycle (which was also a 20yr high), and that also put commodity prices under pressure.”

“Markets remain highly focussed on offshore factors, and while NZ interest rates here will rise in broad unison with their US counterparts, the USD’s dominance will just keep piling pressure in inflation here, which in turn speaks to a firmer policy response and more pain.”