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4 Feb 2015
RBNZ Wheeler speech: Not as dovish as expected
FXStreet (Bali) - The outcome of today's RBNZ Governor Wheeler speech to the Canterbury Employers’ Chamber of Commerce appears to have been not as dovish as one would expect, with real money buying the initial dip.
The NZD/USD saw a quick comeback from 0.7288 low of over 1 full cents to now threaten 0.74, with the market conclusion being that the RBNZ is likely to remain on hold for the foreseeable future rather than cutting rates, after the confusing statement from last week, when the RBNZ said that rates might be headed 'either up or down' in the following months.
Earlier this week, BNZ noted: ""We continue to maintain that the combination of excess domestic demand and the falling currency mean that the probability of a rate hike in the next twelve months is substantially greater than a cut."
The NZD/USD saw a quick comeback from 0.7288 low of over 1 full cents to now threaten 0.74, with the market conclusion being that the RBNZ is likely to remain on hold for the foreseeable future rather than cutting rates, after the confusing statement from last week, when the RBNZ said that rates might be headed 'either up or down' in the following months.
Earlier this week, BNZ noted: ""We continue to maintain that the combination of excess domestic demand and the falling currency mean that the probability of a rate hike in the next twelve months is substantially greater than a cut."