Analysts at Rabobank explained that underlining there is still lots of juice in the 2015 global theme of “FX Wars”.
Key Quotes:
"(But sadly the wheel of time demands a new one for 2016), the RBNZ cut rates 25bp to 2.50%, as expected, but then suggested that they think they are done – at which point NZD surged to hit 0.6761 this morning, having been at 0.6435 a month ago. When will central banks learn?
You can’t just step back and say “done” when others are leaning in the opposite direction. Consider that NZD/CNY has jumped from 3.98 to 4.35 in a month, and there’s more of that to come."
Key Quotes:
"(But sadly the wheel of time demands a new one for 2016), the RBNZ cut rates 25bp to 2.50%, as expected, but then suggested that they think they are done – at which point NZD surged to hit 0.6761 this morning, having been at 0.6435 a month ago. When will central banks learn?
You can’t just step back and say “done” when others are leaning in the opposite direction. Consider that NZD/CNY has jumped from 3.98 to 4.35 in a month, and there’s more of that to come."
