At some point the FX markets will realise it is premature for the Australian currency to be strengthening

Important determinants of the NZD/USD exchange rate direction from 0.6900 in the short to medium term are based around the following questions and themes:-

•How far oil and hard commodity prices decrease (thus depreciating the AUD against the USD) following the non-agreement by OPEC to freeze oil production over the weekend. The Kiwi dollar would follow the AUD down?

•How the FX markets react to a NZ CPI inflation result for the March quarter of +0.20%, which was bang on the RBNZ’s forecast?

•Whether the RBNZ cut the OCR again on 28 April as the exchange rate has remained at elevated levels over ... READ MORE