21 Jul 2015
NZD/USD rises to 0.6650, eyes RBNZ
FXStreet (Córdoba) - The Kiwi and the euro are the best performers on Tuesday among major currencies. NZD/USD printed a fresh daily high during the American session at 0.6650, the strongest level in 6 days.
The pair holds a bullish tone and is recovering for the second day in a row amid a weak US dollar, risk appetite and ahead of the monetary policy decision by the Reserve Bank of New Zealand (RBNZ)
To cut (again) or not to? How much?
The central bank is expected to cut again the Official Cash Rate (OCR) like it did during the last meeting as the outlook for the NZ economy continues to worsen. Most analysts expect a decline of 25 basis points to 3% in the OCR.
“It is expected to signal scope for additional rate cuts. After talking the Kiwi lower, recent comments have noted the speed of its decline. That, and the suggestion that milk prices will rebound, have helped spur a bounce in the currency. It is nearly 2% off the lows seen yesterday”, wrote analysts from Brown Brothers Harriman. According to them around 0.6700 “sellers will re-emerge”.
The pair holds a bullish tone and is recovering for the second day in a row amid a weak US dollar, risk appetite and ahead of the monetary policy decision by the Reserve Bank of New Zealand (RBNZ)
To cut (again) or not to? How much?
The central bank is expected to cut again the Official Cash Rate (OCR) like it did during the last meeting as the outlook for the NZ economy continues to worsen. Most analysts expect a decline of 25 basis points to 3% in the OCR.
“It is expected to signal scope for additional rate cuts. After talking the Kiwi lower, recent comments have noted the speed of its decline. That, and the suggestion that milk prices will rebound, have helped spur a bounce in the currency. It is nearly 2% off the lows seen yesterday”, wrote analysts from Brown Brothers Harriman. According to them around 0.6700 “sellers will re-emerge”.