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11 Mar 2015
RBNZ won’t fuel rate cut expectations, to lead to further weakening of NZD – BNZ
FXStreet (Barcelona) - Bank of New Zealand views that RBNZ might refrain from fuelling rate cut expectations in its meeting, which might only weaken NZD further, key support for NZD/USD as 0.7180.
Key Quotes
“We do not believe the RBNZ will wish to fuel rate cut expectations, however we do think it will significantly flatten its published 90-day bank bill track.”
“This in itself, along with the usual talk of “unjustified” and “unsustainable” NZD strength, could be enough to encourage current negative momentum in the NZD.”
“Key NZD/USD support lies at the early-Feb lows of 0.7180.”
Key Quotes
“We do not believe the RBNZ will wish to fuel rate cut expectations, however we do think it will significantly flatten its published 90-day bank bill track.”
“This in itself, along with the usual talk of “unjustified” and “unsustainable” NZD strength, could be enough to encourage current negative momentum in the NZD.”
“Key NZD/USD support lies at the early-Feb lows of 0.7180.”