NZD/USD has made a fresh cycle low. Economists at ANZ Bank expect the pair to remain under pressure amid risk-aversion.

Risk markets remain nervous

“Risk markets remain nervous in the wake of better US jobs data last week, and have been peppered by an ongoing chorus of hawkish Fed speakers.”

“News of missile attacks on Ukrainian cities yesterday only add to the USD’s safe-haven appeal.”

“In our view, the RBNZ said ‘all the right things’ last week, and are clearly determined to get on top of rampant inflation, but markets continue to fret about recession risks, and at the same time, US interest rates continue to rise, undermining higher kiwi rates.” 

“It’s all a bit messy, and market participants pushing back against the trend softening in risk appetite continue to get hit hard.”