30 Jan 2014
Flash: NZD the worse performer - Rabobank
FXstreet.com (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank noted that the worse performing G10 currency over the past 5 days has been the NZD.
Key Quotes:
“Last night’s decision by the RBNZ to leave rates on hold weighed on the NZD, though the hawkish commentary by the central bank leaves suggests it will still be the first developed world central bank to hike rates”.
“The RBNZ described the NZ economic expansion as having “considerable momentum” and stated that it “remains committed to increasing the OCR as needed to keep future average inflation near the 2 percent target mid-point”.
“There is plenty of speculation that the RBNZ could hike rates at its next policy meeting on March 12.However, this will depend on both economic and market developments and there is risk that either continued unease in emerging markets or the dovish policy positions of most other developed world central banks could cause the RBNZ to delay a rate hike until April”.
“We took profit on our long-held AUD/NZD short position earlier in the week on anticipation of a steady policy outcome from the RBNZ. However, we are looking to buy back the NZD and see upside potential in the NZD/CAD cross.”
Key Quotes:
“Last night’s decision by the RBNZ to leave rates on hold weighed on the NZD, though the hawkish commentary by the central bank leaves suggests it will still be the first developed world central bank to hike rates”.
“The RBNZ described the NZ economic expansion as having “considerable momentum” and stated that it “remains committed to increasing the OCR as needed to keep future average inflation near the 2 percent target mid-point”.
“There is plenty of speculation that the RBNZ could hike rates at its next policy meeting on March 12.However, this will depend on both economic and market developments and there is risk that either continued unease in emerging markets or the dovish policy positions of most other developed world central banks could cause the RBNZ to delay a rate hike until April”.
“We took profit on our long-held AUD/NZD short position earlier in the week on anticipation of a steady policy outcome from the RBNZ. However, we are looking to buy back the NZD and see upside potential in the NZD/CAD cross.”