NZD: Spinning around - ING

Analysts at ING suggest that the combination of political risks and financial stability concerns have reduced the speculative carry attractiveness of the NZD.

Key Quotes

“On both of these fronts, the worst may be behind us - and we believe the resilient economic outlook will at some point trigger a hawkish RBNZ re-pricing. Timing this next year is key - and it may not be until 2Q18 before NZD/USD moves meaningfully back above 0.70. Before this, expect the NZD to be spinning around against a backdrop of gently rising G3 yields and mixed domestic signals.”