HSBC: RBNZ more dovish than expected, the New Zealand dollar faces increasing 01928374656574839201

On October 9th, Kinsey Bank's global forex strategist Lenny Jin said that the New Zealand dollar is facing more and more unfavorable factors, and it is expected that the New Zealand dollar will perform poorly against safe-haven currencies (especially the US dollar) in the short term. Jin wrote in a report that the unfavorable factors include the hawkish repricing of the Fed's interest rate, geopolitical escalation, and the Reserve Bank of New Zealand's more dovish-than-expected stance. The Reserve Bank of New Zealand cut the cash interest rate by 50 basis points today, leading to a big dump in the New Zealand dollar. 'The Reserve Bank of New Zealand may have announced its version of 'policy easing',' Jin said. The central bank emphasized that it is working to avoid unnecessary instability in interest rates and exchange rates, which Jin said may be seen as a dovish signal. As the official cash interest rate is still far above most neutral estimates, the market may price a series of 50 basis point rate cuts, or even 75 basis point rate cuts.