CATEGORY NZD/USD

RBNZ expected to cut rates again, decision close – Commerzbank

RBNZ expected to cut rates again, decision close – Commerzbank

FXStreet (Córdoba) – The RBNZ has already cut its key interest rate since June in three steps, from 3.5% to current levels of 2.75% to cushion the effects on the real economy of the slump in key export goods prices, and to weaken the NZD, says Elisabeth Andreae, analyst at Commerzbank. They expect another rate cut this week.

Key Quotes

“Governor Wheeler repeated in his speech last week that some further easing in the key rate seems likely but would depend on the economic data”.

“There have been encouraging signals recently with regard to growth. Also, inflation in Q3 was a little higher than the RBNZ had expected. Even so, it is still well below the central bank’s target range”.

“We therefore expect a rate cut this week, although the decision should be a close one. Factors pointing to a cut are the higher risks in the emerging markets, especially China, the weaker export outlook, the renewed price slump in dairy products and the marked appreciation of the NZD since late September”.

“The fact that Wheeler referred to the risks of low interest rates for housing markets and inflation is unlikely to prevent him from moving on rates, just as it has failed to do so in the past”.

The RBNZ has already cut its key interest rate since June in three steps, from 3.5% to current levels of 2.75% to cushion the effects on the real economy of the slump in key export goods prices, and to weaken the NZD, says Elisabeth Andreae, analyst at Commerzbank. They expect another rate cut this week.

(Market News Provided by FXstreet)

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NZD/USD: top in place targeting 0.6620 – UOB

NZD/USD: top in place targeting 0.6620 – UOB

FXStreet (Guatemala) – Analysts at UOB Group are neutral sighting a short-term top in place in NZD/USD.

Key Quotes:

“Pull-back could extend lower to 0.6680, 0.6620. We have highlighted the increasing risk of a short-term top in the past few updates and the break below 0.6745 yesterday finally confirmed that.

The current movement is viewed as a corrective pull-back that has room to extend lower to 0.6680 where a break would shift the focus to last week’s low near 0.6620. Strong resistance is at 0.6795 ahead of the key level of 0.6855.”

Analysts at UOB Group are neutral sighting a short-term top in place in NZD/USD.

(Market News Provided by FXstreet)

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