NZD could pick up further pace near term – Societe Generale

FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, sees the Kiwi dollar could extend further its squeeze in the very near term.

Key Quotes

“The RBNZ cut rates 25bp (to 3%) and welcomed NZD weakness, suggesting roe was likely”.

“The bills futures sold off, as they were pricing in more than a 25bp cut, and the NZD bounced 1%, before settling into a tight range until London opened, since when it has rallied further”.

“The market is short Kiwi, and if tomorrow’s Chinese PMI data are stronger, that’ll keep it bid”.