9 Dec 2014
NZD/USD may rebound to low 0.80 by later 2015 – Westpac
FXStreet (Barcelona) - The Westpac Bank Analysts see NZD/USD rebounding to low 0.80’s around late 2015 if New Zealand’s commodity prices rise in line with global demand.
Key Quotes
“This week’s RBNZ meeting - a full-blown MPS - should present downgraded inflation and interest rate forecasts and repeat the warning that the NZD remains too high. The market’s response is likely to be to sell the NZD on the day.”
“Over the medium term, there remains potential for it to fall to 0.7500 by February.”
“By late 2015, the exchange rate should stage a rebound to the low 0.80’s if NZ’s commodity prices rise in line with global demand and the temporary supply effects dissipate. This, plus lingering positive risk sentiment, should offset any interest rate disadvantage resulting from the long-awaited Fed tightening.”
Key Quotes
“This week’s RBNZ meeting - a full-blown MPS - should present downgraded inflation and interest rate forecasts and repeat the warning that the NZD remains too high. The market’s response is likely to be to sell the NZD on the day.”
“Over the medium term, there remains potential for it to fall to 0.7500 by February.”
“By late 2015, the exchange rate should stage a rebound to the low 0.80’s if NZ’s commodity prices rise in line with global demand and the temporary supply effects dissipate. This, plus lingering positive risk sentiment, should offset any interest rate disadvantage resulting from the long-awaited Fed tightening.”