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17 Jul 2015
NZD/USD: Fed to do the lion's share of supply - BNZ
FXStreet (Guatemala) - Analysts at BNZ explained that they now forecast the trough in NZD/USD to be 0.60 in Q1 2016, materially deeper and slightly earlier than previously envisaged.
Key Quotes:
"This embodies a sharp descent from current levels. There is little reason to countenance a rally driven by local factors in the nearterm."
"We anticipate the RBNZ will deliver both the July and September rate cuts with a prominent easing bias. But it is the commencement of the Fed’s tightening cycle that will do the lion’s share of the work in driving NZD/USD lower. The current correction already ranks the sharpest (on a cyclical basis) that NZD/USD has seen since the 1985 float, with the exception of the Global Financial Crisis."
Key Quotes:
"This embodies a sharp descent from current levels. There is little reason to countenance a rally driven by local factors in the nearterm."
"We anticipate the RBNZ will deliver both the July and September rate cuts with a prominent easing bias. But it is the commencement of the Fed’s tightening cycle that will do the lion’s share of the work in driving NZD/USD lower. The current correction already ranks the sharpest (on a cyclical basis) that NZD/USD has seen since the 1985 float, with the exception of the Global Financial Crisis."