NZD: Playing Catch-Up

UBS maintains an 'Attractive' rating on the NZD, raising its September 2026 target for NZDUSD to 0.62 due to a hawkish RBNZ policy shift. The currency is expected to catch up further as the RBNZ likely hikes rates by 75bps amidst deep net-short market positioning.

Key Takeaways

• 1.The RBNZ's hawkish stance is expected to lead to 75bps of rate hikes over the remainder of 2026.
• 2.UBS has raised its NZDUSD target to 0.62 for September 2026, with further appreciation expected through early 2027.
• 3.NZD is rated as 'Attractive' for currency investors seeking to diversify away from the USD.

Table of Contents

• NZD: Playing catch-up
• Risk information

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