ANZ Bank suggests that the New Zealand dollar against the US dollar (NZD/USD) may face challenges in breaking through the 0.60 level in the near future.
The bank points out that retail sales in New Zealand for the second quarter decreased by 1% compared to the previous period. This poses a risk to the country’s GDP in the second quarter and reflects mixed economic prospects.
Regarding the Reserve Bank of New Zealand, ANZ Bank indicates that it will further tighten monetary policy if necessary. The bank is even willing to take the risk of economic recession to counter inflation pressures, thereby further suppressing the New Zealand dollar.
These factors, coupled with global volatility, may keep the NZD/USD exchange rate below the 0.60 barrier in the coming days.
