FXStreet (Edinburgh) – Jane Foley, Senior Currency Strategist at Rabobank, sees the RBNZ keeping its monetary stance unchanged at next week’s meeting.
Key Quotes
“The RBNZ have been candid in its view that the NZD is overvalued for some time”.
“Signs that domestic economic activity is slowing can only increase the central bank’s commitment to a weaker currency and we expect that further action is likely in the coming months with the RBNZ’s tool box potentially comprising of jawboning, intervention and rate cuts”.
“While a steady interest rate cut from the RBNZ next week would likely lend support to NZD/USD, we would see this as a selling opportunity given our expectation that NZD/USD will trend down to the 0.70 level in the coming months”.
(Market News Provided by FXstreet)