ANZ Research discusses NZD/USD outlook and likes buying dips over the coming weeks.
"The NZD has slightly underperformed expectations, trading sideways through July. Even against currencies with much more dovish central banks, the NZD has struggled for traction. This underscores the importance of the global cycle for the high beta currencies, with waning enthusiasm for the reflation trade offsetting the positive domestic backdrop,' ANZ notes.
"We think any dips in the currency will be well bought, however, with the RBNZ’s aggressive stance providing a floor for any weakness," ANZ adds.