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13 Mar 2014
Flash: NZD/USD potential for further upside - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, observes the postive outlook for the NZD post-RBNZ decision.
Key Quotes
"Further afield, the biggest surge in Australian full time employment since 1991 helped AUSUSD through 0.9050, triggering more USD selling. In New Zealand, their Central bank blinked first and raised rates by 25bp, becoming the first major economy to raise rates since the latest leg of the financial crisis, as was widely expected."
"They also signalled that the official cash rate will need to rise by about 2% over the next two years for inflation to settle around target".
"Consequently NZDUSD moved higher as inflation and growth forecasts were also revised higher and other majors followed suit, including EURUSD, reaching highs just shy of 1.3950 to make the single currency one of the best performing currencies of recent weeks."
Key Quotes
"Further afield, the biggest surge in Australian full time employment since 1991 helped AUSUSD through 0.9050, triggering more USD selling. In New Zealand, their Central bank blinked first and raised rates by 25bp, becoming the first major economy to raise rates since the latest leg of the financial crisis, as was widely expected."
"They also signalled that the official cash rate will need to rise by about 2% over the next two years for inflation to settle around target".
"Consequently NZDUSD moved higher as inflation and growth forecasts were also revised higher and other majors followed suit, including EURUSD, reaching highs just shy of 1.3950 to make the single currency one of the best performing currencies of recent weeks."