Kiwi Slide May Wane as RBNZ Dovishness in Doubt, Strategists Say

The decline in New Zealand’s currency and bond yields may soon ease, as some strategists express doubts about further policy easing after a larger-than-usual interest rate cut by the Reserve Bank.

The kiwi could begin to find value should it test support around 57 US cents, though it may still struggle against its Australian peer, strategists say. The Reserve Bank has also given itself wiggle room on its policy direction, which may limit space for a further bond rally, they added.