28 Jan 2015
NZD/USD soft ahead of RBNZ and post FOMC statement
FXStreet (Guatemala) - NZD/USD is trading to the downside and soft ahead of the RBNZ, down 0.30% at 0.7434 at time of writing.
NZD/USD was offered on the Fed's decision to keep rates on hold, with a neutral to dovish statement while there was no indication on when rates might be raised considering that inflation in the near term is looking soft due to international developments and the price of oil. Meanwhile, the Fed do consider that inflation will reach their 2% target in the medium term and this coupled with a bullish outlook for the economy is keeping the bets in place for a rate hike between the middle of 2015 and mid 2016.
Meanwhile, we await the RBNZ. The RBNZ are widely expected to keep on hold although there is speculation that the Central Bank will drop the tightening bias and retreat to a neutral stance. On that basis, the Kiwi is looking soft and 0.7400 could come under threat and bring the 0.7938 Jan 26th and Nov 2011 low's in to focus.
NZD/USD was offered on the Fed's decision to keep rates on hold, with a neutral to dovish statement while there was no indication on when rates might be raised considering that inflation in the near term is looking soft due to international developments and the price of oil. Meanwhile, the Fed do consider that inflation will reach their 2% target in the medium term and this coupled with a bullish outlook for the economy is keeping the bets in place for a rate hike between the middle of 2015 and mid 2016.
Meanwhile, we await the RBNZ. The RBNZ are widely expected to keep on hold although there is speculation that the Central Bank will drop the tightening bias and retreat to a neutral stance. On that basis, the Kiwi is looking soft and 0.7400 could come under threat and bring the 0.7938 Jan 26th and Nov 2011 low's in to focus.