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13 Mar 2014
Flash: NZD moving towards 0.87 handle - Rabobank
FXStreet (Guatemala) - Strategists at Rabobank explained that hiking interest rates by 25 bps to 2.75% the RBNZ marked itself out as the first developed world central bank to hike interest rates this cycle.
Key Quotes:
“The move was very well anticipated, the tone of the accompanying hawkish statement also offered few surprises but the fact that Governor Wheeler indicated that rates could rise by around 2% over the next 2 years was a forceful piece of forward guidance which pushed NZD/USD back to its highest levels for a year”.
“While we have maintained a bullish NZD forecast for some time, on the basis of the strong forward guidance offered by RBNZ Governor today, we have revised up our NZD/USD forecasts. We now expect a move towards the 0.87 area on a 3 mth view”.
Key Quotes:
“The move was very well anticipated, the tone of the accompanying hawkish statement also offered few surprises but the fact that Governor Wheeler indicated that rates could rise by around 2% over the next 2 years was a forceful piece of forward guidance which pushed NZD/USD back to its highest levels for a year”.
“While we have maintained a bullish NZD forecast for some time, on the basis of the strong forward guidance offered by RBNZ Governor today, we have revised up our NZD/USD forecasts. We now expect a move towards the 0.87 area on a 3 mth view”.