1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

NZD: Easing coming from RBNZ this month – MUFG

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, suggests that the recent strength of the kiwi will likely prompt greater concern from the RBNZ when it meets next on the 28th September.

    Key Quotes

    “The New Zealand dollar has also underperformed in the Asian trading session undermined by the results from the latest dairy price auction which revealed that the milk powder price index declined by 4.6%. It follows a strong rebound in dairy prices since the middle of August which fully reversed the sharp decline in prices between March and August.”

    “The recent improvement in New Zealand’s terms of trade have helped the New Zealand dollar to rebound sharply over the last month alongside evidence of strengthening domestic growth momentum.”

    “The trade-weighted kiwi has increased by around 6% over the last month resulting in a significant tightening of monetary conditions in New Zealand which has fully reversed the easing impact of the last two 0.25 percentage point rate cuts by the RBNZ.”

    “The recent strength of the kiwi increases the likelihood that the RBNZ will lower rates further at their next policy meeting which would help bring an end to the recent rebound in the kiwi.”
    For more information, read our latest forex news.
     

Share This Page