9 Jun 2015
NZD/USD: fade any rallies – Rabobank
FXStreet (Edinburgh) - Senior Currency Strategist Jane Foley at Rabobank sees the kiwi dropping to the 0.69 area in 6-9 months.
Key Quotes
“On a 1 mth view, the NZD has been the worst performing major currency”.
“Although expectations of a rate cut from the RBNZ have slipped over the past week or so, confirmation of steady rates tomorrow night are likely to support the NZD”.
“That said, we would expect Governor Walker to make his easing bias clear and for any upside in NZD/USD to be short-lived”.
“On the assumption that the RBNZ cut rates during H2 and given our expectation that the Fed will raise rates in Dec allowing for some broad based USD support, we expect NZD/USD to edge to 0.69 on a 6 to 9 mth view”.
Key Quotes
“On a 1 mth view, the NZD has been the worst performing major currency”.
“Although expectations of a rate cut from the RBNZ have slipped over the past week or so, confirmation of steady rates tomorrow night are likely to support the NZD”.
“That said, we would expect Governor Walker to make his easing bias clear and for any upside in NZD/USD to be short-lived”.
“On the assumption that the RBNZ cut rates during H2 and given our expectation that the Fed will raise rates in Dec allowing for some broad based USD support, we expect NZD/USD to edge to 0.69 on a 6 to 9 mth view”.