NZD/USD: all the action post RBNZ - Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Sean Callow, analyst at Westpac noted explained all the action around and after the RBNZ.

    Key Quotes:

    "NZD/USD dipped from 0.6640 to below 0.6600 as the RBNZ delivered the 25bp rate cut that was only 60% priced in but very quickly bounced to 0.6700 and as high as 0.6759 as economists deemed the accompanying Monetary Policy Statement to be consistent with no more rate cuts.

    RBNZ governor Wheeler did say however that NZD should fall. Our economists in Auckland say that the RBNZ may not expect to cut the OCR, but they have said they stand ready to cut if circumstances change. We think the RBNZ will indeed be surprised on the downside by inflation, GDP growth, and house prices and consequently, we remain steadfast in our view that the OCR will fall to 2.0% next year. AUD/NZD slipped from 1.0860 to 1.0760."
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