CATEGORY NZD/USD

NZD/USD upside limited – UOB

FXStreet (Guatemala) – Analysts at UOB Group noted that NZD was one of the strongest performers on Tuesday, after dairy prices rose for the first time in almost two months and as the greenback struggled to gain any traction.

Key Quotes:

“The first increase in dairy prices since early October was seen in Fonterra’s fortnightly GDT auction. The GDT index was up 3.6%, whilst whole milk powder prices rose 5.3%.

Similar to AUD/USD, the anticipated NZD strength exceeded expectation with an overnight high of 0.6690. While further NZD strength will not be surprising in coming days, the current rally appears to be over-extended and further sustained up-move is not expected for today.”

Analysts at UOB Group noted that NZD was one of the strongest performers on Tuesday, after dairy prices rose for the first time in almost two months and as the greenback struggled to gain any traction.

(Market News Provided by FXstreet)

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NZD/USD: a rate cut is expected – UOB

FXStreet (Guatemala) – Analysts at UOB Group noted the RBNZ rate decision later today.

Key Quotes:

“We expect RBNZ to ease monetary policy further via another 25bps cut to its Official Cash Rate to 2.5%.”

“Even if RBNZ chooses to stay pat, the accompanying statement is likely to stay dovish if not more dovish, especially now that the NZD exchange rate has steadied above 0.6600, the level which RBNZ dropped reference to an “unjustified and unsustainable NZD” in the July MPC meeting.”

Analysts at UOB Group noted the RBNZ rate decision later today.

(Market News Provided by FXstreet)

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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

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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