A client note from Citi:

  • Buying NZD/USD as a short-term risk trade
  • Citi suggests the FOMC decision later on Wednesday is likley to be supportive of risk
  • Citi say the RBNZ will find it difficult to satisfy the market’s expectations for dovishness given the recent declines in interest-rate hike expectations (the RBNZ result is Thursday morning NZ time)
  • Lack of RBNZ intervention during September could be construed as an NZD positive