3 Feb 2014
NZD/USD regains some ground on choppy trading, remains bearish long term
FXStreet (London) - The New Zealand dollar has seen some choppy trading this morning, with NZD/USD swinging between USD0.8093 and USD0.8123.
March rate hike expectations
The Kiwi dollar recovered some ground on comments from the New Zealand treasury that the Reserve Bank of New Zealand will move to hike rates in March. The RBNZ remains the most hawkish of the G10 central banks and the fist expected to raise its rates this year. However, it is likely that it will remain under bearish pressure while it holds off on hikes. It fell after last week’s RBNZ meeting when governor Graeme Wheeler held off on a rate hike from the current official cash rate of 2.5 percent.
The Kiwi dollar has not been helped by its high correlation to risk sentiment, with recent emerging market contagion concerns as well as weaker Chinese macro indicators putting pressure on the Kiwi.
NZD prime for second quarter resurgence
The RBNZ’s perceived hawkish stance made the New Zealand dollar one of the best performers of 2013. Although it may remain under bearish pressure before the RBNZ meeting on 13 March, expect to see a strong recovery later into the first half of 2014.
In there short-term, we may see some support for NZD on Wednesday when unemployment numbers are expected to see an improvement from 6.2 ercent to 6.1 percent.
NZD/USD is currently trading at USD0.8117, up 0.12 percent after some choppiness in early trading.
March rate hike expectations
The Kiwi dollar recovered some ground on comments from the New Zealand treasury that the Reserve Bank of New Zealand will move to hike rates in March. The RBNZ remains the most hawkish of the G10 central banks and the fist expected to raise its rates this year. However, it is likely that it will remain under bearish pressure while it holds off on hikes. It fell after last week’s RBNZ meeting when governor Graeme Wheeler held off on a rate hike from the current official cash rate of 2.5 percent.
The Kiwi dollar has not been helped by its high correlation to risk sentiment, with recent emerging market contagion concerns as well as weaker Chinese macro indicators putting pressure on the Kiwi.
NZD prime for second quarter resurgence
The RBNZ’s perceived hawkish stance made the New Zealand dollar one of the best performers of 2013. Although it may remain under bearish pressure before the RBNZ meeting on 13 March, expect to see a strong recovery later into the first half of 2014.
In there short-term, we may see some support for NZD on Wednesday when unemployment numbers are expected to see an improvement from 6.2 ercent to 6.1 percent.
NZD/USD is currently trading at USD0.8117, up 0.12 percent after some choppiness in early trading.