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3 Aug 2015
Kiwi collapse continues, eyes 0.64 – DB
FXStreet (Mumbai) - NZD/USD’s early last week rally proved a dead cat bounce as of Friday and Robin Winkler, Analyst at Deutsche Bank continues to see reasons to short the cross with a 0.64 target.
Key Quotes:
“The dairy outlook remains dire, futures suggesting Fonterra will cut milk price forecasts again next week.”
“Positioning was lighter and NZD could also suffer from a CNY band widening, having one of largest positive betas to USD-independent CNY movements in Asia.”
“A Wheeler speech on Tuesday that noted the impact of currency depreciation on domestic inflation was interpreted as hawkish.”
“The governor appeared to be deliberately contradicting his own central bank’s research, which showed that depreciations caused by falls in export prices were deflationary.”
Key Quotes:
“The dairy outlook remains dire, futures suggesting Fonterra will cut milk price forecasts again next week.”
“Positioning was lighter and NZD could also suffer from a CNY band widening, having one of largest positive betas to USD-independent CNY movements in Asia.”
“A Wheeler speech on Tuesday that noted the impact of currency depreciation on domestic inflation was interpreted as hawkish.”
“The governor appeared to be deliberately contradicting his own central bank’s research, which showed that depreciations caused by falls in export prices were deflationary.”