Adarsh Sinha, Co-Head of Asia FX and Rates Strategy at Bank of America, stated that signals from the Reserve Bank of New Zealand (RBNZ) suggest that they have concluded their rate hike cycle. Additionally, with New Zealand’s immigration lagging behind Australia’s, this implies that the New Zealand dollar‘s performance will be subdued against G-10 currencies including the Australian dollar by year-end.
Sinha mentioned that among all central banks within the Group of Ten (G-10), the RBNZ is perhaps the clearest in indicating the conclusion of their rate hike cycle.
Even though the Reserve Bank of Australia (RBA) hasn’t formally signaled for another rate hike, they are more likely to initiate one.
Forecasts indicate that the Australian dollar against the New Zealand dollar could rise to 1.10 by year-end, suggesting it will reach its highest level since June 21.
