NZD underperforms in March
• Despite higher risk appetite and global commodity prices, the NZD underperformed in March, down 1-2% against most majors
• Softer yuan and yen were drags on the NZD; Soft Q4 GDP highlighted poor NZ economic performance last year
• Global equities reach record highs; modest fall in global rates as developed market easing cycle kicked off by the Swiss
NZD flat in February
• Timing of policy easing pushed out around the world; Fed speakers united and data non-compliant with an early easing
• Global rates push higher and many equity markets reach record highs; Currency markets well-contained
• NZD/USD trades less than a 2-cents range, closes month modestly weaker; JPY underperforms
A pullback in the NZD after late-2023 exuberance
• NZD/USD fell over 3% in January, retracing some of the 8½% rally through November-December.
• Broad USD strength, retracing some late-2023 weakness; US economic resilience and some paring of Fed cut expectations
• Global equities power up to fresh record highs; global rates push higher retracing late-2023 moves.