The RBNZ's forward projections are that rates will rise to 2.6% by the end of 2023. With interest rates currently at 0.75% there is still some way to go. The recent falls in the NZD have been sue to risk off selling over Omicron uncertainty. The NZD is looking very cheap now.
Next week Pfizer are holding a press conference on Friday where they are widely expected to give some more details on their vaccines protection against Omicron. With the RBNZ exports showing strength, GDP set to grow, trade weighted Index being revised higher post the last meeting, and a series of rate hikes planned then a medium term NZDJPY long looks attractive.
