8 Dec 2014
NZD/USD breaks Nov 7 low, new muti-year low
FXStreet (Bali) - NZD/USD just hit a new 2 and a half year low by breaking Nov 7 low, allowing the rate to pint its cheapest multi-year level at 0.7644.
NZD is under-performing its AUD cousin, with traders probably lightening up their long NZD commitment amid two potential negative inputs for NZD this week.
Firstly, Fonterra is expected to announce a 2015 milk payout downgrade to farmers.; secondly, the RBNZ meets on Thursday, and with inflation in New Zealand running low, there is no pressure for the Central Bank to end its 'wait-and-see mode', while risks of stepping up their overvaluation rhetoric towards the NZD remain quite high, given that the NZD value has not deviated much from the NZ trade weighed index (NZTWI).
NZD is under-performing its AUD cousin, with traders probably lightening up their long NZD commitment amid two potential negative inputs for NZD this week.
Firstly, Fonterra is expected to announce a 2015 milk payout downgrade to farmers.; secondly, the RBNZ meets on Thursday, and with inflation in New Zealand running low, there is no pressure for the Central Bank to end its 'wait-and-see mode', while risks of stepping up their overvaluation rhetoric towards the NZD remain quite high, given that the NZD value has not deviated much from the NZ trade weighed index (NZTWI).