The German bank predicted a key interest rate cut in New Zealand at the end of the second half of 2019, but their forecast changed in the Q2 of 2020.
The reason is the poor report on the labor market from the island state. The unemployment rate has risen to 4.3% of the expected 4.1%. The previous value was 3.9%. The deterioration in labor market conditions and global risks are the reasons why the forecast is mitigated. According to Deutsche, the Central Bank of New Zealand is unlikely to cut interest rates on expectations that inflation will rise.
As soon as the news came out, Kiwi collapsed with 64 pips.
Trader Martin Nikolov