The NZD is the top performer among the majors in the session ahead of the Reserve Bank of New Zealand (RBNZ) meeting. Hawkish guidance will lift NZD/USD to 0.6250, according to economists at Scotiabank.

The RBNZ is expected to hike rates

“Some 70% of the Bloomberg survey, and all the local banks who participate in the poll, expect the RBNZ to raise its Cash Rate 75 bps to 4.25%. OIS pricing is not fully onside, however; swaps are pricing in around 86% risk of a 3/4 point hike.” 

“Hawkish guidance (markets are pricing in a Cash Rate near 5.25% by mid-2023) will lift the NZD to test key resistance at 0.6250.”

See – RBNZ Preview: Forecasts from seven major banks, going big on the OCR