15 Jun 2015
NZD/USD expected to weaken, but not immensely – UOB
FXStreet (Barcelona) - Analysts at UOB Group, see further rate cuts ahead in New Zealand, but don’t expect NZD/USD to weaken significantly, and further share their forecasts for the coming quarters for the pair.
Key Quotes
“If we are right in thinking that interest rates will move lower, and stay low for longer than widely expected, then this should see the NZD weaken from here. However, we believe that the Kiwi should not weaken significantly as we see growth in New Zealand supported (much like the RBNZ). Much depends on upcoming economic data, though, and the next major one to keep a close watch would be the next quarterly CPI print (due on 16 July). At this juncture, are targets for NZD/USD are as follows:
3Q15 0.68
4Q15 0.67
1Q16 0.67”
Key Quotes
“If we are right in thinking that interest rates will move lower, and stay low for longer than widely expected, then this should see the NZD weaken from here. However, we believe that the Kiwi should not weaken significantly as we see growth in New Zealand supported (much like the RBNZ). Much depends on upcoming economic data, though, and the next major one to keep a close watch would be the next quarterly CPI print (due on 16 July). At this juncture, are targets for NZD/USD are as follows:
3Q15 0.68
4Q15 0.67
1Q16 0.67”