Results for 'RBNZ'
22 articles with this tag name
Updated May 17, 2013 3:15:00 PM
The Kiwi has continued to decline over the past few days, largely following in the footsteps of the Aussie, and further downside could still be on the horizon. That said, this move may be attributed to not only USD strength, but also NZD weakness as the market has slowly been coming around to the notion we highlighted on Monday, “the implementation of such (macro-prudential) measures essentially takes the possibility of future rake hikes off the
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Updated May 12, 2013 8:11:44 PM
The kiwi is testing a support zone against the USD dollar, after broad USD strength and speculation of further intervention from the RBNZ to lower the commodity currency sent the pair into a free-fall last week. USD strength came on the back of better than expected US economic data and repositioning out of US treasuries, which resulted in massive moves across the FX board. NZD was also hit by the announcement that the RBNZ has
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Updated May 8, 2013 10:05:05 PM
RBNZ intervention, RBA policy, Chinese data and employment figures out of Australia and NZ played havoc with AUDNZD over the last week. Weighing on the pair, is the possibility of further interest rate cuts in Australia, better than expected employment data out of NZ and inflation concerns in China. On the other side of the equation, extremely strong Australian labour data for April removed some of the impetus for the RBA to cut rates in
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Updated May 8, 2013 10:15:00 AM
Reserve Bank of New Zealand (RBNZ) Governor Wheeler’s comments last night caused a stir in the NZD and sent the currency lower. Wheeler reiterated that the exchange rate is significantly overvalued, but what markets responded to was his acknowledgement that the RBNZ has sold NZD and is capable of further intervention. The Bank has taken this approach as opposed to a rate cut as Wheeler noted that the Australian rate cuts did not curb AUD
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Updated May 8, 2013 1:17:52 AM
RBNZ Governor Wheeler sparked a sell-off in the kiwi after he stated that the RBNZ has been selling NZ dollars and is capable of further intervention to weaken the kiwi. This isn’t the first time the Governor has talked about intervention, but the idea of being on the wrong side of the fence if the bank were to start heavily amassing foreign currency spooked the market. NZDUSD lost just fewer than 100 pips immediately after
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Updated Apr 30, 2013 12:41:11 AM
The ASX 200 is looking like it may close at its highest level since 2008, with the financial sector leading the charge after ANZ raised its first-half dividend. Also, the broader market is feeding off a positive lead from the US on the back of better than expected housing data for March. Pending home sales increased 1.5% m/m, higher than an expected 1.0% increase and a prior 0.4% decrease. Building permits miss expectations, increasing
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Updated Apr 24, 2013 2:00:00 AM
Context: The Aussie CPI data for Q1 was weaker than expected, the quarterly rate of the trimmed mean was 0.3%, the annual rate fell to 2.2%, from 2.3% in Q4 2012. This supports the RBA’s easing bias and may trigger future rate cuts later this year. In contrast the RBNZ was fairly upbeat. It left rates on hold at 2.5% last night saying that “global financial market sentiment remains buoyant”, “growth in the New
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Updated Apr 24, 2013 12:00:00 AM
The Aussie and the Kiwi were sent in opposite directions following the release of Australian CPI data and the RBNZ’s interest rate decision, respectively. After the events of today, pricing in the interbank market suggests interest rates in Australia may match those in NZ as early as October. In other words, the market is looking for another 50 bps of cuts from the RBA, while the RBNZ holds its cash rate steady at 2.5%. While
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Updated Apr 22, 2013 11:04:11 PM
The Reserve Bank of New Zealand has a monetary policy meeting tomorrow, at which the bank is expected to keep the official cash rate at 2.5%. While we think there is little chance the RBNZ will move on interest rates, the tone of the bank will be watched closely. The stubbornly high kiwi dollar has been a thorn in the side of the NZ economy for a while and the RBNZ has been very vocal
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Updated Apr 15, 2013 11:00:40 PM
New Zealand’s CPI has been a focal point of monetary policy discussions at the RBNZ and will continue to be going forward. In fact, inflation is one of the most influential factors in the Reserve Bank of New Zealand’s policy decisions, as it is a gauge of price pressure on the economy. Hence, consistently weak CPI data may be enough to steady the RBNZ from raising rates in the medium-term. We aren’t expecting the bank
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