- Analytics
- News and Tools
- Market News
- NZD/USD could struggle to reach 0.71 if geopolitical tensions heighten – Rabobank
NZD/USD could struggle to reach 0.71 if geopolitical tensions heighten – Rabobank
The New Zealand dollar is the best performing G10 currency on a one-day view after the messages of the Reserve Bank of New Zealand (RBNZ) in today’s policy meeting went beyond what the market had been expecting. This should cement a move higher towards 0.71 though NZD/USD may struggle to reach it if geopolitical tensions continue to remain the dominant theme, economists at Rabobank report.
Upping the ante
“The RBNZ hiked rates by 25 bp for a third consecutive meeting, in line with the Bloomberg survey of economists. That said, the committee made clear that the decision to announce a 25 bps rate hike rather than a 50 bps move had been finely balanced for many members. In addition to the rate hike, the RBNZ also announced that it would commence the gradual reduction of the Bank’s bond holdings.”
“Although we are forecasting a move higher towards NZD/USD 0.71 on a three-month view, this could be thrown off kilter if geopolitical news worsens and the safe-haven USD finds additional support.”
“In view of the far more cautious tone of the RBA, we do see scope for AUD/NZD to move lower. Our three-month AUD/NZD forecast stands at 1.03.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
