10 Nov 2015
Fed rate hike likely to exert downward pressure on NZD – BNZ
FXStreet (Delhi) – Raiko Shareef, Currency Strategist at BNZ, suggests that the US rates will be rising relative to the rest of the world, which will keep downward pressure on NZD/USD.
Key Quotes
“That should be enough to take us below 0.65. But we still expect NZD/USD to trade down to 0.60 by March.”
“Once the renminbi is admitted into the IMF’s SDR basket (30 November?) , we feel that China will be compelled to be less involved in the market. That should allow CNY to weaken into 2016, and drag NZD and AUD lower with it.”
“We wonder whether Asian equities will take kindly to the much firmer prospect of rising US rates, which may spark renewed capital outflow. We’ll be watching this for a directional cue on NZD early in the week.”
“All these roads lead back to volatility, with regard to the impact on NZD’s value.”
Key Quotes
“That should be enough to take us below 0.65. But we still expect NZD/USD to trade down to 0.60 by March.”
“Once the renminbi is admitted into the IMF’s SDR basket (30 November?) , we feel that China will be compelled to be less involved in the market. That should allow CNY to weaken into 2016, and drag NZD and AUD lower with it.”
“We wonder whether Asian equities will take kindly to the much firmer prospect of rising US rates, which may spark renewed capital outflow. We’ll be watching this for a directional cue on NZD early in the week.”
“All these roads lead back to volatility, with regard to the impact on NZD’s value.”