NZD/USD to see a move back to the 0.66/0.67 zone – ING

The New Zealand dollar has been hit very hard by the adverse risk environment and dollar strength. But solid prospects of domestic economic data may lift the NZD/USD back to the 0.66/67 area, economists at ING report.

Jobs data could fuel 50bp hike speculation

“NZD is one of those currencies that could look at a faster recovery thanks to strong fundamentals.

“Inflation neared 6% in 4Q, calling for fast RBNZ action, and signs that the jobs market has remained quite tight in the 4Q numbers published this week may allow markets to speculate that the next rate hike (on 23 February) will be a 50bp one.”

“We could see a move back to 0.66/0.67.”