12 Dec 2014
NZD/USD remain steady around 0.7800
FXStreet (Córdoba) - NZD/USD is hovering around 0.7800 as it has been the case since Thursday’s Asian session. Today the pair bottomed at 0.7767, reaching the lowest price in two days and quickly bounced back to the upside. It printed a daily high on European hours at 0.7840 but then it pulled back toward 0.7800.
NZD/USD consolidates weekly gains on the back of RBNZ
On Wednesday the Reserve Bank of New Zealand (RBNZ) kept the official rate unchanged at 3.50% as expected, but surprised markets by adding a hawkish bias in the statement, boosting the kiwi across the board. NZD/USD is trading a hundred pips above the level it had before the statement.
According to Imre Speizer, FX Strategist at Westpac, the reinsertion of the phrase: “further increase in the OCR is expected” may temper the enthusiasm of speculative receivers, but only briefly. “We feel that some of the RBNZ’s latest projections are already starting to look dated since they were finalised in late November. Oil prices have fallen even further than anticipated, making it likely that inflation will fall below 1% next year. If so, markets will continue to price out
tightening and may even price in loosening”, explained Speizer.
NZD/USD consolidates weekly gains on the back of RBNZ
On Wednesday the Reserve Bank of New Zealand (RBNZ) kept the official rate unchanged at 3.50% as expected, but surprised markets by adding a hawkish bias in the statement, boosting the kiwi across the board. NZD/USD is trading a hundred pips above the level it had before the statement.
According to Imre Speizer, FX Strategist at Westpac, the reinsertion of the phrase: “further increase in the OCR is expected” may temper the enthusiasm of speculative receivers, but only briefly. “We feel that some of the RBNZ’s latest projections are already starting to look dated since they were finalised in late November. Oil prices have fallen even further than anticipated, making it likely that inflation will fall below 1% next year. If so, markets will continue to price out
tightening and may even price in loosening”, explained Speizer.