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12 Mar 2015
NZD/USD might move towards 0.70 – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, notes that with broad-based USD strength expected to sustain this year, NZD/USD risks a move lower towards 0.70.
Key Quotes
“Measured against the USD we do see room for further some slippage in the value of the NZD.”
“Although the RBNZ raised the OCR rate no less than four times last year from 2.5% to 3.5%, it has now made clear that policy is on hold.”
“Inflation expectations have fallen and largely as a result of the drop in oil prices, headline CPI inflation is expected to fall to around zero in the current quarter."
“In contrast to the Fed, the RBNZ appears to be sitting on the fence as to whether the next move in rates will be up or down.”
“Assuming that broad based USD strength sustains this year, we see risk of NZD/USD trending lower towards 0.70 this year.”
Key Quotes
“Measured against the USD we do see room for further some slippage in the value of the NZD.”
“Although the RBNZ raised the OCR rate no less than four times last year from 2.5% to 3.5%, it has now made clear that policy is on hold.”
“Inflation expectations have fallen and largely as a result of the drop in oil prices, headline CPI inflation is expected to fall to around zero in the current quarter."
“In contrast to the Fed, the RBNZ appears to be sitting on the fence as to whether the next move in rates will be up or down.”
“Assuming that broad based USD strength sustains this year, we see risk of NZD/USD trending lower towards 0.70 this year.”