11 Jul 2014
RBNZ, RBA jawboning unlike to be effective - TDS
FXStreet (Bali) - RBZ and RBNZ jawboning in their respective currencies is unlikely to be effective, notes TDS FX Team.
Key Quotes
"Despite senior officials from the RBA and the RBNZ voicing discontent with high AUD and NZD levels, we believe it is unlikely that further such jawboning will be effective in driving the currencies lower just now."
"The acceleration and outperformance of AUD and the NZD have been largely beyond the control of the RBA and the RBNZ for months now. As valid as the RBA’s and RBNZ’s fundamental arguments are (which will ultimately be proved right) right now portfolio flows are dominating and driving total return performance."
Key Quotes
"Despite senior officials from the RBA and the RBNZ voicing discontent with high AUD and NZD levels, we believe it is unlikely that further such jawboning will be effective in driving the currencies lower just now."
"The acceleration and outperformance of AUD and the NZD have been largely beyond the control of the RBA and the RBNZ for months now. As valid as the RBA’s and RBNZ’s fundamental arguments are (which will ultimately be proved right) right now portfolio flows are dominating and driving total return performance."