FXStreet (Guatemala) – Analysts at ANZ explained that with the US Fed now odds-on to hike in December, expect further steam to be taken out of the NZD/USD, easing the RBNZ’s concerns.
Key Quotes:
“However, this puts more focus on Asia given USD leverage, with financial markets likely to be more on edge. While last week’s local labour market figures were soft, they shouldn’t be overplayed. Timelier indicators of the domestic economy remain consistent with a trough and improvement in economic prospects.”
“Risks remain, and the dairy sector is one where we are particularly mindful, with renewed falls in prices showing tough times ahead. Ahead this week, the RBNZ’s Financial Stability Report should highlight a “sound, but with risks” message for the financial system, while a swathe of domestic data will be assessed to see whether the picture remains one of improving growth but a benign inflation backdrop.”
(Market News Provided by FXstreet)