NZDUSD Drops as RBNZ Hints at Prospective Future Easing
Date
1/28/2016 1:05:47 AM
(MENAFN- DailyFX) Talking Points:
NZDUSD depreciates after RBNZ monetary statement suggest further easing for the year may be necessary RBNZ says global demand and China slowdown has increased uncertainty amid falling key commodity prices RBNZ maintains positive growth outlook for 2016 due to immigration tourism and domestic growth indicators Find key turning points for the New Zealand Dollar with DailyFX SSI The New Zealand Dollar depreciated roughly 1 percent today against its US counterpart after the Reserve Bank of New Zealand Governor Wheeler hinted at possible easing. Rates themselves were unchanged at 2.5 percent however the statements following the decisions cited major concerns for the NZD and possible future monetary policy. The Reserve Bank of New Zealand was overt with their expectations of further appropriate depreciation for the NZD suggesting it was in line with falling export prices. Currency strategist Ilya Spivak outlines key bearish levels in his technical analysis of the NZD/USD. Global growth concerns paired with falling key commodity prices were cited as a major reason for the RBNZ’s depreciation concerns. The price of Oil has been consistent in its effect on global growth outlook for many central banks the RBNZ is no different and along with Oil it has cited low global inflation growth and market volatility. These are themes that have commonly been cited in central bank statements however due to the nature of New Zealand’s commodity export based economy falling prices hold more precedent. The RBNZ in its statement outlined domestic growth updates as well maintaining 2016 growth within the context of a “Softer” 2015. Some of the factors accredited to boosting domestic growth were immigration tourism increased construction activity as well as both business and consumer confidence. Falling fuel prices were blamed for the low headline CPI however annual core inflation is in line with expectations. The RBNZ’s inflation expectations remain stable for the time being.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.