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New Zealand Dollar gains support from RBNZ hiking outlook

HSBC projects the Reserve Bank of New Zealand will keep raising rates by 25bp per quarter through 3.50% by Q3 2027.

Reported · Written up by our desk · Major Pairs

HSBC strategists told FXStreet that the New Zealand dollar is getting support from New Zealand’s improving growth data and what they call an aggressive Reserve Bank of New Zealand hiking path.

They say the RBNZ has already started raising rates and that HSBC Economics expects further increases of 25 basis points per quarter, reaching 3.50% by Q3 2027.

The note also flags that NZD/USD remains sensitive to global growth conditions and risks tied to Middle East developments, factors that can quickly change currency pricing.

FXStreet added that the view has upside support for NZD, even as broader market uncertainty continues to influence risk sentiment and rate expectations.

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