NZD: Shift in stance by the RBNZ is positive - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that today’s shift in stance by the RBNZ from an easing bias to a neutral one is positive for the NZD, since it has given the green light to markets to price in eventual tightening.

Key Quotes

“However markets are cautious about buying NZD in the wake of the US election result, which means that a 0.72- 0.74 range should contain NZD/USD during the days ahead.”

“We’ll be watching dairy commodities closely, though. An extension of the recent rally in WMP would tell us it is not merely a supply story (weather-affected NZ production) but also related to demand, especially from Asia.”