Citi discusses NZD outlook in light of this week's RBNZ policy meeting.
"While rates were left unchanged as expected, the RBNZ increased its Large Scale Asset Purchase program to as much as NZD100bn from NZD60bn and extended it until June 2022. This was dovish for two reasons (1) it was not wholly expected today and (2) the NZD40bn increase is sizeable. Additional guidance made it clear that the policymakers were aiming to actively push bond yields lower and address recent NZD appreciation," C ti notes.
"NZDUSD has dragged AUDUSD lower (which was not helped by poor consumer sentiment data overnight). CitiFX Strategy had expected Further downside for NZD, eyeing the mid-July low around 0.65," Citi adds.