2 Oct 2014
AUD, NZD forecasts revised lower - HSBC
FXStreet (Bali) - HSBC forecasts for the AUD and NZD have both been revised lower at 0.86 and 0.77 by year-end respectively.
Key Quotes
"Our forecasts for the AUD and NZD have both been revised lower, in part because of extra efforts locally to engineer a weaker currency. In contrast to other G10 nations, this aspect of the currency war is being driven by the more traditional issue of balance of payments adjustment rather than as a tool to combat deflation."
"New Zealand’s economy may be improving and further rate hikes are likely in 2015, but we would not fight the central bank’s desire for a softer currency. Australia’s rebalancing is moving slower than they would like, and the RBA will likely continue to counteract AUD rallies with verbal intervention."
Key Quotes
"Our forecasts for the AUD and NZD have both been revised lower, in part because of extra efforts locally to engineer a weaker currency. In contrast to other G10 nations, this aspect of the currency war is being driven by the more traditional issue of balance of payments adjustment rather than as a tool to combat deflation."
"New Zealand’s economy may be improving and further rate hikes are likely in 2015, but we would not fight the central bank’s desire for a softer currency. Australia’s rebalancing is moving slower than they would like, and the RBA will likely continue to counteract AUD rallies with verbal intervention."