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Overbought NZD/USD hits resistance and stalls
The Kiwi is the top performing major in October due to the buoyant risk mood and rising inflation expectations. A hawkish central bank also helps with a solid domestic recovery pushing the RBNZ into action soon. In fact, one prominent, local bank expects six more rate hikes – one at each meeting between now and August, taking the official cash rate (OCR) to 2%. We note that NZD is the only overbought G10 currency versus the dollar so position squaring may be a risk. Slowing Chinese growth may also impact the kiwi going forward. After making a cycle low at 0.6859 last month, NZD/USD has been on a tear. Long-term ... (full story)