How long can the Kiwi keep flying?

Callum Thomas

Topdown Charts

The New Zealand dollar seems to be defying gravity of late, as the interest rate differential between the RBNZ's OCR and the Fed funds rate continues to move lower.  While the interest rate differential sometimes works with a lead and sometimes with a lag in setting direction for the Kiwi (aka the NZDUSD exchange rate), at present it is pointing to further downside.

This will only become more accentuated in the coming weeks as the Fed will almost certainly hike rates again in June.  Meanwhile the RBNZ expects itself to be on hold until late 2019.  So the question is, how long can the Kiwi keep flying?


MORE ON



Head of Research
Topdown Charts

Callum is Head of Research at Topdown Charts. Topdown Charts is a chart-driven macro research house covering global Asset Allocation and Economics.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.