FXStreet (Guatemala) - Analysts at Nomura explained that the RBNZ has taken note of the NZD’s recent appreciation saying that “the exchange rate has been moving higher since September, which could, if sustained, dampen tradables sector activity and medium-term inflation.
Key Quotes:
"This would require a lower interest rate path than would otherwise be the case.” We have been expecting the RBNZ to cut rates for some time and forecast the RBNZ to act at the December meeting. Currently, the rates market is pricing in about a 13bp cut at the December meeting."
"Moreover, recent indications from the futures market suggest that milk prices are likely to underperform at the next auction on 3 November and indicate that the sharp increase in August and September is over and that there may be a small correction to the downside."
See here for latest price action in NZD/USD
Take note, RBA interest rate decision coming up, see here for RBA interest rates preview: What to expect in AUD/USD?
For more information, read our latest forex news.
No comments:
Post a Comment