12 Dec 2013
Flash: AUD & NZD, RBNZ is the Lonesome Hawk - TDS
FXstreet.com (London) - Strategists at TD Securities said the NZD continues to outperform this morning in the wake of a hawkish RBNZ meeting late yesterday.
Key Quotes:
“The Bank’s statement reconfirmed expectations that it may be the first developed-world central bank to tighten policy (we think as soon as the first quarter of 2014)”.
“That message has completely overshadowed their view that the currency is overvalued, and should continue to keep the NZD well supported”.
“AUD/NZD sunk to a new cycle low under 1.09 overnight (despite a decent Australian employment report) and with diverging activity among the Antipodean nations, that trend looks to have even further legs in the coming months”.
Key Quotes:
“The Bank’s statement reconfirmed expectations that it may be the first developed-world central bank to tighten policy (we think as soon as the first quarter of 2014)”.
“That message has completely overshadowed their view that the currency is overvalued, and should continue to keep the NZD well supported”.
“AUD/NZD sunk to a new cycle low under 1.09 overnight (despite a decent Australian employment report) and with diverging activity among the Antipodean nations, that trend looks to have even further legs in the coming months”.