Supersized hikes in the UK and Norway alongside hawkish Powell testimony saw the USD rebound. Economists at ANZ Bank discuss NZD/USD outlook.

More tightening is coming in the Northern Hemisphere

The Kiwi is lower on the back of USD strength in the wake of hawkish testimony by Fed Chair Powell, and supersized hikes by both the Norges Bank and Bank of England, all of which put upward pressure on US interest rates. Although moves in rates and FX were muted, there does seem a sense that more tightening is coming in the Northern Hemisphere, and that may start to favour those currencies. 

With no local data today and not much next week either, the Kiwi looks set to ebb and flow with global moves until something notable happens in the region, and given correlations, all eyes are on the 4 July RBA decision.