Forex Flash: Markets mull possible RBNZ decision December 6 – BNZ
Forex pairs in this Article »
NZD/USD
FXstreet.com (Barcelona) - "We suspect markets will continue to toy with the idea of rate cuts up until the 6 December RBNZ meeting - short( of a collapse in US bond yields, this means NZ-US interest rate differentials are likely to remain at levels that present a mild drag on the currency." writes Research Analyst Mike Jones at BNZ.
However, "the support from a more optimistic global backdrop, and rising NZ commodity prices should prevent a marked decline in the NZDUSD. We suspect dips will be limited to the 200-day moving average at 0.8080." he notes.
"Any NZD underperformance will be concentrated in the NZD/AUD, in our view. NZ-AU interest rate differentials have become more negative over the past fortnight with robust Australian economic data (today's employment figures being the latest example) providing some contrast to the NZ outlook. This, combined with the break below 0.7875 support, sets the cross up for a possible move back down into the 0.7700-0.7800 range over the next few weeks." Jones adds.
However, "the support from a more optimistic global backdrop, and rising NZ commodity prices should prevent a marked decline in the NZDUSD. We suspect dips will be limited to the 200-day moving average at 0.8080." he notes.
"Any NZD underperformance will be concentrated in the NZD/AUD, in our view. NZ-AU interest rate differentials have become more negative over the past fortnight with robust Australian economic data (today's employment figures being the latest example) providing some contrast to the NZ outlook. This, combined with the break below 0.7875 support, sets the cross up for a possible move back down into the 0.7700-0.7800 range over the next few weeks." Jones adds.
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