Tag Archives: AUD/NZD

NZD: Picked To Underperform Through USD Upswing

In light of the recent month’s price action, we reaffirm, indeed redouble,

We look at the current 6.2% unemployment rate relative to its “normal” level or NAIRU.

There is a popular perception that the Bank will use this Wednesday’s FSR to announce the removal of its loan-to-value-ratio (LVR) restrictions.

Three key developments have informed our latest thinking: the recent commodity price down turn,

Equity markets collapsed and subsequently recovered in October, with global growth worries widely blamed.

The NZD took its cues from a hard-hit AUD overnight.NZD/USD is 1.2% weaker at 0.7720.

The NZD sits toward the bottom end of the G10 leader-board vs the USD,

RBA to leave the cash rate at 2½% tomorrow for 15th consecutive month and their updated forecasts on Friday will be little changed.

With the Reserve Bank sounding less convinced about lifting its policy cash rate any further,

As expected, the RBNZ left rates on hold last week andstruck a more dovish tone.

The NZD fell against the USD on Friday, in line with other major currencies after the Bank of Japan’s surprise announcement.

The NZD has regained its composure over the past 24hours, with NZD/USD posting a 0.6% gain to 0.7850.