In late May, we said that if the FOMC relaxes its easing bias and US yields break convincingly higher the NZD/USD pullback could extend. Clearly, this risk is playing out, although the extent and timing of the USD rally has caught us, and most of the market, on the hop. As a result, we have lowered our NZD/USD forecasts. We now see the NZD/USD at 0.7800 by year-end, albeit with risks tilted toward the upside.
Read the full report: FX Research
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