17 Jul 2015
Heads up for NZD/USD, RBNZ - Deutsche
FXStreet (Guatemala) - Analysts at Deutsche Bank explained the week ahead for the NZD/USD with RBNZ as the showdown.
Key Quotes:
"This focus this week will be the RBNZ’s OCR Review. There is now a very high degree of consensus that the RBNZ will lower the OCR by a further 25bps to 3.0% - a view that we agree with – but less consensus about the outlook for policy beyond this meeting. Assuming that a 25bp rate cut is delivered, the focus therefore will be on the accompanying statement to see to what extent it opens the door to further policy easing at the subsequent meeting on 10 September and beyond, as is currently priced by the market."
"The limited dataflow is highlighted by the services sector PMI (we expect this to ease somewhat from last month’s high reading of 58.0), June migration and visitor arrivals (net migrant arrivals rebounded last month) and the June trade data (we expect the trend widening of the trade deficit to have continued as dairy revenue continues to sag)."
Key Quotes:
"This focus this week will be the RBNZ’s OCR Review. There is now a very high degree of consensus that the RBNZ will lower the OCR by a further 25bps to 3.0% - a view that we agree with – but less consensus about the outlook for policy beyond this meeting. Assuming that a 25bp rate cut is delivered, the focus therefore will be on the accompanying statement to see to what extent it opens the door to further policy easing at the subsequent meeting on 10 September and beyond, as is currently priced by the market."
"The limited dataflow is highlighted by the services sector PMI (we expect this to ease somewhat from last month’s high reading of 58.0), June migration and visitor arrivals (net migrant arrivals rebounded last month) and the June trade data (we expect the trend widening of the trade deficit to have continued as dairy revenue continues to sag)."