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4 Jun 2014
NZD remains elevated - BNZ
FXStreet (Guatemala) - BNZ research team explained that from the RBNZ’s perspective, the currency remains elevated.
Key Quotes:
“For the June quarter to date, the NZ TWI has averaged at 80.0 against the Bank’s expectation of 78.4. For the latter to be achieved, the TWI would have to take a quick trip to 76.0 (consistent with NZD/USD near 0.81) and stay there for the month of June. With the odds of that looking slim, markets continue to expect a pause in RBNZ rate hikes in the near future”.
“That said, the TWI currently sits close to what the RBNZ anticipated for Q3”.
Key Quotes:
“For the June quarter to date, the NZ TWI has averaged at 80.0 against the Bank’s expectation of 78.4. For the latter to be achieved, the TWI would have to take a quick trip to 76.0 (consistent with NZD/USD near 0.81) and stay there for the month of June. With the odds of that looking slim, markets continue to expect a pause in RBNZ rate hikes in the near future”.
“That said, the TWI currently sits close to what the RBNZ anticipated for Q3”.