24 Feb 2015
NZD/USD: Choppy across Yellen but down on NZ outlook
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7468 with a high of 0.7535 and a low of 0.7421.
NZD/USD has started to turn back towards the downside on Yellen's testimony during a choppy session on her account. Meanwhile the RBNZ’s Survey of expectations for the March quarter was released yesterday showing another decline in 2yr inflation expectations, from 2.06% in Q4 2014 to 1.80%, the lowest level since 1999. Analysts at TD Securities explained that while the market is reluctant to price in a cut at next month’s RBNZ meeting, this data opens up the potential for the Bank to signal a clear easing bias next month. "There was little change in GDP expectations, Q4 at 0.8% and Q1 at 0.7% while the NZD is not expected to move significantly to remain around US$0.73 by June and US$0.72 by Dec 2015."
NZD/USD to fall further
Imre Speizer, analyst at Westpac Banking Corporation explained that over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible. Note also that NZ CPI for Q1 (which prints in April) will probably be near zero."
NZD/USD has started to turn back towards the downside on Yellen's testimony during a choppy session on her account. Meanwhile the RBNZ’s Survey of expectations for the March quarter was released yesterday showing another decline in 2yr inflation expectations, from 2.06% in Q4 2014 to 1.80%, the lowest level since 1999. Analysts at TD Securities explained that while the market is reluctant to price in a cut at next month’s RBNZ meeting, this data opens up the potential for the Bank to signal a clear easing bias next month. "There was little change in GDP expectations, Q4 at 0.8% and Q1 at 0.7% while the NZD is not expected to move significantly to remain around US$0.73 by June and US$0.72 by Dec 2015."
NZD/USD to fall further
Imre Speizer, analyst at Westpac Banking Corporation explained that over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible. Note also that NZ CPI for Q1 (which prints in April) will probably be near zero."