📝N.Z. Dollar Likely top Remain Sensitive to U.S. Rates: Crédit Agricole FX Strategy

• There was a bit of a turnaround in New Zealand's business confidence and activity indicators in August, which was an important month as it was the first month NZ’s international border was fully re-opened. While both confidence and activity indicators are still in negative territory, the bounce in August is a sign that the economy is beginning to stabilize. NZD is likely to remain more reactive to US rates, however, as the NZ rates market is already aggressively priced for the RBNZ but the U.S. rates market is yet to give up on potential rate cuts in the second half of 2023.

- Crédit Agricole FX Strategy