22 Jan 2015
NZD/USD liking its wounds post BoC shock
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7570 with a high of 0.7578 and a low of 0.7548 and up 0.04% on the day.
NZD/USD is liking its wounds post falling from the 0.77 handle in the US down to the lows of 0.7548. Commodities were hit while the BoC surprised markets also by cutting interest rates while concerned about the global outlook, causing a wave of supply in the commodity currencies.
Sean Callow, analyst at Westpac Banking Corporation ABN, explained that the commodity dollar bloc underperformed markedly, with the moves all coming in response to the BoC shock. "A dovish statement was expected given the weakness in oil and natural gas prices but no forecaster expected a cut at this meeting. The BoC lowered its overnight rate 25bp to 0.75%, its first change since then-governor Carney hiked rates in 2010".
NZD/USD is liking its wounds post falling from the 0.77 handle in the US down to the lows of 0.7548. Commodities were hit while the BoC surprised markets also by cutting interest rates while concerned about the global outlook, causing a wave of supply in the commodity currencies.
Sean Callow, analyst at Westpac Banking Corporation ABN, explained that the commodity dollar bloc underperformed markedly, with the moves all coming in response to the BoC shock. "A dovish statement was expected given the weakness in oil and natural gas prices but no forecaster expected a cut at this meeting. The BoC lowered its overnight rate 25bp to 0.75%, its first change since then-governor Carney hiked rates in 2010".