NZD/USD has ebbed and flowed with market expectations for policy. Economists at ING analyze Kiwi’s outlook.

RBNZ to soften hawkish stance

The RBNZ’s tightening bias looks less and less credible considering the global central bank backdrop and the February meeting should see some softening of the hawkish narrative. 

New Zealand Dollar (NZD) may underperform the Australian Dollar (AUD) as markets price in RBNZ cuts, but NZD/USD still looks bound higher from the second quarter