NZD/USD to consolidate within 0.68 into 2022 – DBS Bank NZDUSD RBNZ Fed Banks
NZD/USD consolidated between 0.6750 and 0.7200 in 2H21. Economists at DBS Bank expect the kiwi to remain stable around the 0.68 level into 2022.expects further removal of monetary stimulus over time, it also considers high house prices as unsustainable and a challenge to monetary and financial stability. Hence, consensus might be overly enthusiastic in expecting the official cash rate to increase to 1.50% in 2022. We see USD supported by the two Fed hikes in 4Q22.”growth to slow to 3.
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