ASB in the NZD, a quick summary view from them:
- NZD/USD remains vulnerable to periodic bouts of risk aversion in the near term, at least as long the Omicron picture is still taking shape.
- But the fundamentals remain in rude health (think high meat and dairy prices, those still-favourable interest rate differentials), and we expect NZD/USD to move higher over the next year.
- For NZD/AUD, both the shorter- and medium-term headwinds are skewed to the upside given the AUD’s own sensitivity to negative COVID headlines and the risk a dovish RBA fails to meet present market expectations.
