Listen to the latest market mood for the NZDUSD pair.
Strong NZD, Weak USD
At the last Reserve Bank of New Zealand meeting the NZD was sent shooting higher as the RBNZ said that they would need 100bps less stimulus in the coming weeks. The economy and the global situation was less severe than the last time they met and this provided for a boost for the NZD and NZ10 Y bonds.
Th medium term outlook for the USD remains weak and positive vaccine hopes is also supportive of the NZD from a cyclical growth perspective.
Therefore, expect NZDUSD buyers from deeper pullbacks.
Trade Risks: The main risk to this trade is if there is a sharp risk off tone which boosts the USD higher, weakens NZD, and that will invalidate this outlook.