NZD / USD: the decline continues
the central bank to further deterioration in the global economic outlook and
inflation expectations in the country in early March, RB New Zealand lowered
interest rate by 0.25% to 2.25%, however, the statement of the Fed D.Yellen
that must be slower to raise interest rates, landslides
the US dollar in the financial market, including the pair NZD / USD. Efforts by the RBNZ
New Zealand dollar decrease in quotations were insufficient. Couple
NZD / USD rose above $ 0.6900 last week.
The most important
export sector of the economy apart from the wood processing industry
considered agriculture. About 18% of the total exports
of exports of dairy products. At the same time the largest buyer
New Zealand dairy production is China. From this it is clear that
decrease in Chinese imports against the backdrop of a slowdown in the Chinese economy, and
and low world prices for milk and other agricultural products,
painfully affect the condition of the whole New Zealand economy. decrease
world prices for commodities, including dairy products, reduces
receipt of export proceeds to the state budget. Another negative factor for
exporters of the country is the high rate of national currency.
since the 14:00 (GMT) is expected to publish in the dairy products price index
the auction results, prepared by Global
Dairy Trade. The last time the index fell by 2.9%.
index will be released today with the reduction, it is logical to assume in the background
falling oil prices and other commodity prices, the pair NZD / USD also
market participants’ attention will be focused on the publication on Wednesday at 18:00
minutes of the last meeting of the Committee on the Federal Open Market Operations
to assess the prospects for further Fed monetary plans
policy in the United States.
We intend to carry out further rate hikes this year, but
at a slower pace.
From the RBNZ
It is expected to further decline in interest rates, and in the course of meetings
RBNZ in June and August.
Fed and RBNZ monetary policy will be the main fundamental factor
in the medium term, put downward pressure on the pair NZD / USD.
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