ND/USd on the backfoot - ANZ

Analysts at ANZ explained that the NZD is on backfoot, having rallied around a cent on the back of yesterday’s “dovish” Fed hike, only to succumb to selling in the wake of softer Q4 GDP data. 

Key Quotes:

"On that score, while we wouldn’t want to overplay how weak the data was (amid signs of temporary weather distortions), they do nonetheless underscore the RBNZ’s view that time is on its side, especially given the myriad of global uncertainties and recent moves higher in retail interest rates, which is a de facto tightening."

"None of that should be enough to shoot the Kiwi down, but strong growth was one of the key attractions, and things aren’t quite as glowing as we thought on that score."