Flash: RBNZ indicate rates will rise - Rabobank

FXstreet.com (London) - A research team at Rabobank said that overnight the RBNZ gave a clear indication that rates will rise in 2014.

Key quotes:

“…while leaving them on hold today, stating that “the bank will increase the official cash rate as needed in order to keep future average inflation near the 2% target midpoint.”

“Governor Wheeler repeated that message in person in testimony later, noting that the economy was growing at above a 3% rate, that inflation pressures were expected to continue to increase, and that house price inflation was seen remaining high”.

AUD/USD on the defensive

AUD/USD is recovering from the broad based rally in the dollar when the pair dropped from 0.9060 to 0.8920.
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