1 Jul 2015
Target an even weaker NZD/USD in Q3 – Deutsche Bank
FXStreet (Barcelona) - Robin Winkler, Strategist at Deutsche Bank, maintains a bearish NZD/USD target at 0.65 by the end of Q3, and further expects RBNZ to ease further into July.
Key Quotes
“Our short NZD recommendation in the Blueprint assumed an OCR cut in June to be followed up in either July or September. In light of deteriorating domestic and external data, bolder action is likely needed from the RBNZ to prevent wide-spread defaults in the dairy sector in the near term and to get inflation back on track in the medium term.”
“Our new baseline is for the RBNZ to cut in both July and September. We believe the risk is skewed toward 50bps of easing being frontloaded into July.”
“Having hit our target of 0.68/USD, we now target 0.65/USD and 70 trade-weighted by the end of Q3.”
Key Quotes
“Our short NZD recommendation in the Blueprint assumed an OCR cut in June to be followed up in either July or September. In light of deteriorating domestic and external data, bolder action is likely needed from the RBNZ to prevent wide-spread defaults in the dairy sector in the near term and to get inflation back on track in the medium term.”
“Our new baseline is for the RBNZ to cut in both July and September. We believe the risk is skewed toward 50bps of easing being frontloaded into July.”
“Having hit our target of 0.68/USD, we now target 0.65/USD and 70 trade-weighted by the end of Q3.”