NZD/USD is on the backseat amid a risk off sentiment – BBH

NZD is underperforming amid a risk off sentiment in FX markets, BBH FX analysts report. 

RBNZ has penciled-in another 75bps of easing over the next 12 months

"New Zealand’s economy recovered more than anticipated. Real GDP rose 0.7% q/q in Q4 (consensus: 0.4%, RBNZ forecast: 0.3%) after shrinking by -1.1% the previous two quarters. Higher spending by international visitors boosted growth in tourism-related industries like rental, hiring and real estate services, retail trade and accommodation." 

"The RBNZ has penciled-in another 75bps of easing over the next 12 months that would see the policy rate bottom at 3.00%. The swaps market price-in higher odds of a 3.25% terminal policy rate which offers NZD support."