kiwi bears relentless, NZD/USD heads back toward 5 year low
Kiwi is moving away slightly from five year lows reached on Thursday. Analysts are now forecasting 25bp OCR reductions in July, September and October. This will take the OCR to a low of 2.5% this year. A marked deteriora…
Kiwi is moving away slightly from five year lows reached on Thursday. Analysts are now forecasting 25bp OCR reductions in July, September and October. This will take the OCR to a low of 2.5% this year.
A marked deterioration in NZ economic sentiment, evidenced by Consumer Confidence, Regional Economic Confidence and Employment Confidence surveys and reduction in global dairy prices to multi-year lows strengthens the cause for RBNZ cuts.
The sharp sell-off in Chinese equity prices whIch according to analysts are a good reflection of the Chinese economy's trajectory does not bode well for the antipodeans.
Analysts at Westpac are now forecasting an average NZD/USD exchange rate of 62 cents in the December quarter of 2015. NZD/USD is currently trading at 0.67056, heading back towards 5-year lows.
