In light of the recent RBNZ meeting, analysts at UOB Group see increasing likeliness that NZD/USD could extend the downside in upcoming periods.
Key Quotes
“New Zealand’s central bank, RBNZ, left its Official Cash Rate unchanged at 3.5% as expected, but it dropped the tightening bias reference (which was featured as late as during its December 2014 decision, and a bias that was held by RBNZ since July 2013) and Governor Graeme Wheeler now its expects to leave rates unchanged for some time”.
“He emphasized that the next rate move could be either up or down, depending on incoming data”.
“He also reiterated that the current NZD level is unjustified and unsustainable, and he expects to see further significant depreciation”.
Key Quotes
“New Zealand’s central bank, RBNZ, left its Official Cash Rate unchanged at 3.5% as expected, but it dropped the tightening bias reference (which was featured as late as during its December 2014 decision, and a bias that was held by RBNZ since July 2013) and Governor Graeme Wheeler now its expects to leave rates unchanged for some time”.
“He emphasized that the next rate move could be either up or down, depending on incoming data”.
“He also reiterated that the current NZD level is unjustified and unsustainable, and he expects to see further significant depreciation”.
