By Richard Pace — Jan 23 - 03:35 AM
Deutsche bank research desk is bearish NZD and think AUD/NZD reaches 1.10
They note how NZD is propped by high rates and strong data surprises now
But New Zealand stacks up poorly vs other G10 countries on other metrics
They cite business and consumer sentiment, current account, valuation
Deutsche think support from high rates/strong data could fade
NZ rates have already compressed to global peers somewhat
Consumer spending looks weak, migration return could lessen wage pressure
NZD support from bond inflows could ease as rates moderate
They say foreign direct income could also melt away as recession unfolds
For more click on FXBUZ
Source:
Refinitiv IFR Research/Market Commentary