NZD: Peering around corners – Rabobank
In view of expectations that further rate cuts are on the cards from the Fed, the ECB and various other G10 central banks during Q4, the impact of RBNZ policy easing on the NZD crosses will likely be offset, Rabobank’s FX strategist Jane Foley notes.
Escalation in the Middle East to undermine the AUD and NZD
“While an announcement of a 50-bps rate cut next week would likely still push the NZD lower, we would expect buyers to emerge on dips below the NZD/USD0.62 level, on optimism that Chinese stimulus will boost regional demand for New Zealand exports.”
“That said, given the less dovish stance of the RBA, we would look for AUD/NZD to continue its recent trend higher towards 1.11 on a 3-month view. A clear caveat to the recent better tone in both the AUD and the NZD is the outlook for the broader tone of risk appetite.”
“Further escalation in Middle Eastern tensions would support the USD and undermine the AUD and NZD. This risk underscores our preference for the AUD/NZD trade.”
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.