NZD/USD ended the week back above 0.62. This week is all about the RBNZ and the impact of cyclone Gabrielle, economists at ANZ Bank report.

Fall in the USD cannot be taken for granted

“Even though some of the special factors (other central banks going slow, a global risk-off vibe) behind 2022’s USD rally have faded, if nothing else, last week’s bounce is a timely reminder that a fall in the USD can’t be taken for granted, especially if the Fed continues to take leadership on tackling inflation.”

“But this week is all about the RBNZ and the debate re whether cyclone Gabrielle will or should change their OCR decision (analysts’ consensus and market pricing still say a 50 bps hike). NZD will be hypersensitive to the RBNZ’s decision and tone.”