RBNZ May Sink NZD Prices as 2018 US Midterms Offer it Uncertainty

New Zealand Dollar Fundamental Forecast: Neutral

  • Reduction in US China trade war concerns resulted in aggressive New Zealand Dollar gains
  • RBNZ may disappoint monetary policy bets on third quarter CPI data, sending NZD falling
  • US midterms, with Fed rate hikes still in sight, offer level of uncertainty for sentiment and NZD

We just released our 4Q forecast for equities, which may impact NZD, in the DailyFX Trading Guides page

The pro-risk New Zealand Dollar was on pace last week to mark its best performance against the US Dollar in almost two months. After a shaky October for global stock markets, November began on an upbeat as the SP 500 set itself up for the most upside progress over the course of one week since March. The backdrop for this optimism seemed to be a cooldown in US China trade war concerns which was further bolstered Friday.

This coming week holds a level of uncertainty for NZD prices given multiple critical event risks. Starting with domestic concerns, the New Zealand Dollar awaits

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/nzd/2018/11/02/RBNZ-May-Sink-NZD-Prices-as-2018-US-Midterms-Offer-it-Uncertainty.html