Rabobank: RNBZ will make a hike, but…
NZD/USD met resistance around $0.8720 yesterday and slid to $0.8660 today.
The majority of the economists expect the Reserve Bank of New Zealand to lift up the benchmark interest rate to 3.5% when it meets on July 24. However, analysts at Rabobank think that though a rate hike this month appears to be a foregone conclusion, the RBNZ may tone down its hawkish rhetoric because of the sharp drop in NZ business confidence, moderating gains in house price inflation, lower CPI and a fall in daily prices.
According to Rabobank, NZD/USD will slide to $0.8600 in the coming months.
Chart. Daily NZD/USD