8 May 2014
RBNZ aims to scare the market with future intervention - BNZ
FXStreet (Bali) - BNZ has shared its take on what it means the threat of intervention to sell the Kiwi in the foreseeable future by the RBNZ governor Wheeler.
Key Quotes
The NZD stands out over the past 24 – hours as the weakest performing major currency.
The initial catalyst for the decline was comments from RBNZ Governor, Wheeler , in a prepared speech. Ostensibly the speech was focused on the NZ dairy sector , but seemed a thinly veiled vehicle to reinforce the RBNZ ’ s views on the NZD."
"The market latched onto the following statement. “If the currency remains high in the face of worsening fundamentals, such as a continued weakening in export prices, it would become more opportune for the Reserve bank to intervene in the currency market.”
"It has been a long time since the ‘i’ word has been used, and not one the Governor would use lightly. Still , it will be the Bank’s goal that by threatening such action it will not need to implement it."
Key Quotes
The NZD stands out over the past 24 – hours as the weakest performing major currency.
The initial catalyst for the decline was comments from RBNZ Governor, Wheeler , in a prepared speech. Ostensibly the speech was focused on the NZ dairy sector , but seemed a thinly veiled vehicle to reinforce the RBNZ ’ s views on the NZD."
"The market latched onto the following statement. “If the currency remains high in the face of worsening fundamentals, such as a continued weakening in export prices, it would become more opportune for the Reserve bank to intervene in the currency market.”
"It has been a long time since the ‘i’ word has been used, and not one the Governor would use lightly. Still , it will be the Bank’s goal that by threatening such action it will not need to implement it."