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30 Jun 2015
RBNZ expected to cut, RBA might maintain rates steady – BBH
FXStreet (Barcelona) - Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, offers the outlook for RBNZ and RBA policy, and for the NZD/USD.
Key Quotes
“Disappointing domestic survey data heightened expectations that the Reserve Bank of New Zealand will cut rates at its next meeting (July 23) and signal scope for additional rate cuts. The New Zealand dollar is trading at new multi-year lows today. It is difficult to talk about meaningful support until closer to $0.6500--a little more than 2.5 cents from current levels.”
“Australian data in the form of private sector credit expansion was in line with expectations rising 0.5% in May for a 6.2% year-over-year rate. The RBA meets on July 7. In an earlier note, we erroneously suggested the market was pricing in a rate cut. The consensus calls for policy to remains on hold after the May rate.”
Key Quotes
“Disappointing domestic survey data heightened expectations that the Reserve Bank of New Zealand will cut rates at its next meeting (July 23) and signal scope for additional rate cuts. The New Zealand dollar is trading at new multi-year lows today. It is difficult to talk about meaningful support until closer to $0.6500--a little more than 2.5 cents from current levels.”
“Australian data in the form of private sector credit expansion was in line with expectations rising 0.5% in May for a 6.2% year-over-year rate. The RBA meets on July 7. In an earlier note, we erroneously suggested the market was pricing in a rate cut. The consensus calls for policy to remains on hold after the May rate.”