Tag Archives: RBNZ
Daily FX Wrap and Strategy
The NZD had underperformed its major peers over thepast 24-hours to sit at 0.8540 this morning.The NZD/USD paddled sideways yesterday during a quietday on the domestic data front.
Economy Watch – Outlook for Borrowers: Post April OCR Review
The RBNZ raised the Official Cash Rate (OCR) by 0.25% at its 24 April meeting. The cash rate now sits at 3.00%, 0.50% above its historic lows, but still some way below what the RBNZ considers to be ‘neutral’ (circa 4.25%).
Weekly Commentary
Last week the Reserve Bank increased the OCR a secondtime to 3.00%, as was unanimously expected by economistsand financial markets.
Daily FX Wrap and Strategy
It was a quiet end to the week for the NZD as localmarkets were closed for ANZAC day. The NZD/USD closedat 0.8580.For the past week, or so, the NZD/USD has traded a fairlytight range between 0.8550 and 0.8640.
The Global Macro Pulse
The dollar is generally flat except against the NZD which rallied following the RBNZ statement. NZDUSD rallied to a high of 0.8637 following the statement,
Economy Watch – NZD Strength Annoys RBNZ
For now, we will stick with our call that the RBNZ hikes in both June and July. At the time of writing, the market is pricing in an 85% chance of a hike in June and 34 basis points of hikes, cumulatively, over June and July.
NZD After RBNZ
All and sundry expected the RBNZ to hike its cash rate to 3.0% today and it didn’t disappoint. The focus, instead, was on how the RBNZ would convey the message that it was uncomfortable with
Daily FX Wrap and Strategy
The NZD is a little lower this morning ahead of the RBNZpolicy decision. The NZD/USD is 0.2% softer at 0.8580.The collapse in AUD following Australia’s soft inflation print pushed the NZD/AUD higher overyesterday’s session.
Daily FX Wrap and Strategy
The NZD drifted higher alongside the AUD over the past24 hours, and sits 0.3% higher against the USD at 0.8600.A combination of improved risk sentiment and a steadybid tone for the AUD helped the NZD higher.
Daily FX Wrap and Strategy
The NZD weakened by 0.7% against the USD overThursday to 0.8560. With little movement over Friday andMonday, it opens this morning around that level. The move occurred in the face of broad-based USDstrength.
Altering our FX forecasts to reflect longer-duration weakness in the USD
We have decided to fundamentally change our USD view. We now donot expect the USD to significantly strengthen until the real Fed Fundsrate turns positive in early 2016 (chart 1).
Daily FX Wrap and Strategy
The NZD is 0.3% weaker against the USD this morning,sitting at 0.8630.Yesterday, the main event was the Q1 2014 CPI reading,which revealed an inflation rate of 1.5% y/y,