27 Oct 2015
NZD/USD: headed lower on RBNZ?
FXStreet (Guatemala) - Analysts at TD Securities explained that they still look for aggressive language from the central bank to jawbone the currency lower.
Key Quotes:
"NZD/USD is trading well above the cyclical lows observed at the September 10th meeting (0.6250/0.6300) when the RBNZ viewed further depreciation as “appropriate”.
We think we will see aggressive language similar to the July statement where further depreciation was viewed as “necessary” when NZD/USD traded around 0.6600, which is about 2-big figures below where spot currently trades. The TWI sits around 73.50 which is almost 8% above the September 23rd lows. Note that the RBNZ projected a TWI value of 67.9 by the end of December."
Key Quotes:
"NZD/USD is trading well above the cyclical lows observed at the September 10th meeting (0.6250/0.6300) when the RBNZ viewed further depreciation as “appropriate”.
We think we will see aggressive language similar to the July statement where further depreciation was viewed as “necessary” when NZD/USD traded around 0.6600, which is about 2-big figures below where spot currently trades. The TWI sits around 73.50 which is almost 8% above the September 23rd lows. Note that the RBNZ projected a TWI value of 67.9 by the end of December."