16 Jul 2014
NZD cannot remain divorced from poor dairy auction - ANZ
FXStreet (Bali) - According to Cameron Bagrie,
Chief Economist and Con Williams, Rural Economist, both representing ANZ Bank, the NZD cannot remain divorced for much longer from falling prices in NZ Fonterra's dairy auctions.
Key Quotes
"The NZD cannot remain divorced from such commodity price developments. We are rapidly approaching a juncture where economic development warrant a change to the markets assessment of monetary policy."
"For now the market is locked and loaded for a July hike (the RBNZ’s forward guidance can hardly be stepped away from) and another before year end. The former is favoured (though not as clear cut as market pricing implies in our view) while the latter we disagree with."
"The NZD is looking vulnerable to a correction over the coming months."
Chief Economist and Con Williams, Rural Economist, both representing ANZ Bank, the NZD cannot remain divorced for much longer from falling prices in NZ Fonterra's dairy auctions.
Key Quotes
"The NZD cannot remain divorced from such commodity price developments. We are rapidly approaching a juncture where economic development warrant a change to the markets assessment of monetary policy."
"For now the market is locked and loaded for a July hike (the RBNZ’s forward guidance can hardly be stepped away from) and another before year end. The former is favoured (though not as clear cut as market pricing implies in our view) while the latter we disagree with."
"The NZD is looking vulnerable to a correction over the coming months."