3 Feb 2015
Signs of a further rate cut by RBNZ might weaken the kiwi further – BNZ
FXStreet (Barcelona) - According to BNZ, any indication of a rate cut in RBNZ Governer Wheeler’s speech might send NZD/USD lower to test the support at 0.7100.
Key Quotes
“We think Governor Wheeler and his team are not yet itching to pulling the trigger, but we’ll know significantly more about their thinking come Wednesday afternoon.“
“Then, Governor Wheeler will continue the long-running tradition of delivering a state-of-the-economy speech. While always of interest, the attention given to this year’s edition will be intense, given last week’s surprise shift to neutral. The market will treat this as a direct follow-up.”
“Most likely, the Governor will stress that the RBNZ is on hold for quite some time. There is a (very) outside chance that he softens the ground for a rate cut.“
“Each outcome would produce very different reactions for NZD/USD. The weight of expectation (of interest rate cuts) remains heavy.”
“A signal that the Bank is strictly on a neutral footing would likely be enough to inspire a rally back to 0.7350.”
“An indication that the Bank is seriously contemplating rate cuts would likely see a test of significant support at 0.7100.”
Key Quotes
“We think Governor Wheeler and his team are not yet itching to pulling the trigger, but we’ll know significantly more about their thinking come Wednesday afternoon.“
“Then, Governor Wheeler will continue the long-running tradition of delivering a state-of-the-economy speech. While always of interest, the attention given to this year’s edition will be intense, given last week’s surprise shift to neutral. The market will treat this as a direct follow-up.”
“Most likely, the Governor will stress that the RBNZ is on hold for quite some time. There is a (very) outside chance that he softens the ground for a rate cut.“
“Each outcome would produce very different reactions for NZD/USD. The weight of expectation (of interest rate cuts) remains heavy.”
“A signal that the Bank is strictly on a neutral footing would likely be enough to inspire a rally back to 0.7350.”
“An indication that the Bank is seriously contemplating rate cuts would likely see a test of significant support at 0.7100.”