NZD/USD dips as RBNZ easing expectations climb – Westpac

FXStreet (Barcelona) - Sean Callow of Westpac, notes that the lowering of RBNZ rate projections by two banks caused a dip in NZD/USD as easing expectations by the central bank rose.

Key Quotes

NZD/USD fell from 0.6790/00 late Asia to 0.6740 late NY and again under 0.6715 in the Sydney morning as two banks lowered their projections of the RBNZ cash rate from 2.75% (Westpac’s view) to 2.5%. The kiwi is probing new lows since June 2010.”

“The twice-monthly dairy auction saw whole milk powder average prices fall -10.8% to a six year low as supply increased and demand disappointed. NZD/USD fell 25bp in immediate response. AUD/NZD was choppy, rebounding in early Sydney to 1.1375.”

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