24 Jul 2015
RBNZ disappointed the extreme doves - BNPP
FXStreet (Guatemala) - Analysts at BNP Paribas noted the bid for NZD/USD post the RBNZ rate cut that failed to present a serve bearish outlook and sent the currency higher on a relief rally.
Key Quotes:
"The RBNZ cut rates by 25bp as was widely expected. Forward guidance in the accompanying statement shifted in a more dovish direction. Whereas in June the RBNZ noted that “we expect further easing may be appropriate” this time around they indicated “at this point, some further easing seems likely.” The statement continued to call for further NZD depreciation."
"Despite this, NZD firmed on the statement, which likely reflects stretched short NZD positioning a rate market that is already fully priced for another rate cut in September, and this latest statement does not really lock in a September move. We see scope for NZD recovery vs. the AUD and EUR to extend in the near-term. "
Key Quotes:
"The RBNZ cut rates by 25bp as was widely expected. Forward guidance in the accompanying statement shifted in a more dovish direction. Whereas in June the RBNZ noted that “we expect further easing may be appropriate” this time around they indicated “at this point, some further easing seems likely.” The statement continued to call for further NZD depreciation."
"Despite this, NZD firmed on the statement, which likely reflects stretched short NZD positioning a rate market that is already fully priced for another rate cut in September, and this latest statement does not really lock in a September move. We see scope for NZD recovery vs. the AUD and EUR to extend in the near-term. "