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5 Aug 2014
NZD/USD to keep dropping, 0.80 by ear-end - BNZ
FXStreet (Bali) - Raiko Shareef, FX Strategist at BNZ, notes that they remain comfortable with a call for 0.80 in NZD/USD by year-end.
Key Quotes
"The RBNZ achieved a goldilocks result in the last policy meeting – a significantly lower NZD with hardly any movement in short-term interest rates."
"And while the subsequently-released June intervention statistics revealed nothing in the way of significant selling, the Bank has bought itself time until at least the July statistics are released at the end of August."
"But in the context of a broadly stronger USD, we do not expect the NZD will reverse all of the decline the RBNZ instigated."
"Looking forward, we expect further downside traction in NZD/USD to be driven by the US side of the equation. We remain comfortable with our pick of 0.80 by year-end."
Key Quotes
"The RBNZ achieved a goldilocks result in the last policy meeting – a significantly lower NZD with hardly any movement in short-term interest rates."
"And while the subsequently-released June intervention statistics revealed nothing in the way of significant selling, the Bank has bought itself time until at least the July statistics are released at the end of August."
"But in the context of a broadly stronger USD, we do not expect the NZD will reverse all of the decline the RBNZ instigated."
"Looking forward, we expect further downside traction in NZD/USD to be driven by the US side of the equation. We remain comfortable with our pick of 0.80 by year-end."