Citi discusses its expectations for tonight's RBNZ policy meeting.
"The latest CitiFX Flows & Positioning: Real Money Short NZD shows a market that is now long JPY and AUD versus short NZD, GBP, and USD. NZD stands out among them – shorts now in stretched territory against light positioning elsewhere in G10. The move has been led by real money," Citi notes.
"As for the upcoming meeting, CitiFX Strategy expects a hold in rates and a dovish tone but minimal market impact. Bigger picture, we maintain our bias for AUDNZD upside into the 1.10/1.15 range in 2H this year," Citi adds.