28 Apr 2016
NZD rate warning only slightly strengthened - Westpac
Imre Speizer, analyst at Westpac noted the RBNZ and wording in the statement around the strength of the bird to the effect that the bird was able to take-off.
Key Quotes:
"The NZD exchange rate warning was only slightly strengthened to: “The exchange rate remains higher than appropriate given New Zealand’s low commodity export prices."
"A lower New Zealand dollar is desirable to boost tradables inflation and assist the tradables sector.” from “The trade-weighted exchange rate is more than 4 percent higher than projected in December, and a decline would be appropriate given the weakness in export prices.”
"NZD/USD jumped from 0.6845 to 0.6925 – a larger positive response than the 1/2c we had predicted."
Key Quotes:
"The NZD exchange rate warning was only slightly strengthened to: “The exchange rate remains higher than appropriate given New Zealand’s low commodity export prices."
"A lower New Zealand dollar is desirable to boost tradables inflation and assist the tradables sector.” from “The trade-weighted exchange rate is more than 4 percent higher than projected in December, and a decline would be appropriate given the weakness in export prices.”
"NZD/USD jumped from 0.6845 to 0.6925 – a larger positive response than the 1/2c we had predicted."