In our previous edition of the Week Ahead Forecast, we opined that the Pound to the New Zealand Dollar was due to a pullback from notably overbought conditions.

The New Zealand Dollar can stay under pressure if the odds for an August interest rate cut at the Reserve Bank of New Zealand (RBNZ) continue to rise.

There is another, potentially even more potent force at play: the unwind of the carry trade as the Japanese Yen recovers from multi-decade lows.

The New Zealand Dollar is falling amidst disappointment in China and growing odds of an interest rate cut at the Reserve Bank of New Zealand (RBNZ).