17 Jul 2015
NZD, the worst of the week
FXStreet (Córdoba) - The New Zealand dollar was among the worst performers in the currency market during the last five days, as it extended the decline across the board, something that it has been doing during the last months.
Expectations about a rate cut from the Reserve Bank of New Zealand rose as economic data continued to disappoint and also amid a decline in commodity prices. The central bank will meet next Thursday.
The outlook for the kiwi remains weak. If the central bank cut the interest rate and mentions that rates are now low enough, NZD could start a recovery, considering that, at least for a while, there will be no more expectations of more monetary stimulus.
Big declines vs USD, AUD
While the kiwi was among the worst, the USD, GBP and AUD were the top performers. NZD/USD is posting the eleventh weekly decline out of the last thirteen weeks. On Friday managed to rise modestly and to stay above 0.6500 but posted the lowest close for a week in exactly six years.
AUD/NZD resumed the upside after a 3-week bearish correction and rose back above 1.1300. The pair did not reach fresh 2015 highs, but posted the highest close since November 2013.
“NZD/USD dropped more than 8% over the month of June as it keeps breaking supports, one after another. We remain bearish on the NZD and we expect further depreciation of the Kiwi versus the Aussie and the greenback”, wrote Arnaud Masset and Yann Quelenn, market analysts at Swissquote.
Expectations about a rate cut from the Reserve Bank of New Zealand rose as economic data continued to disappoint and also amid a decline in commodity prices. The central bank will meet next Thursday.
The outlook for the kiwi remains weak. If the central bank cut the interest rate and mentions that rates are now low enough, NZD could start a recovery, considering that, at least for a while, there will be no more expectations of more monetary stimulus.
Big declines vs USD, AUD
While the kiwi was among the worst, the USD, GBP and AUD were the top performers. NZD/USD is posting the eleventh weekly decline out of the last thirteen weeks. On Friday managed to rise modestly and to stay above 0.6500 but posted the lowest close for a week in exactly six years.
AUD/NZD resumed the upside after a 3-week bearish correction and rose back above 1.1300. The pair did not reach fresh 2015 highs, but posted the highest close since November 2013.
“NZD/USD dropped more than 8% over the month of June as it keeps breaking supports, one after another. We remain bearish on the NZD and we expect further depreciation of the Kiwi versus the Aussie and the greenback”, wrote Arnaud Masset and Yann Quelenn, market analysts at Swissquote.