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

FXStreetMar 20, 2025 11:42 AM

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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."

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

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

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