31 Jan 2014
NZD/USD resumes losses after slight recovery
FXstreet.com (London) - NZD/USD has resumed strong bearish momentum after recovering through the morning session.
RBNZ remains hawkish
The Kiwi fell on Reserve Bank of New Zealand governor Graeme Wheeler’s speech overnight, with the central bank head setting out plans to raise interest rates to contain inflationary pressure.
Wheeler’s speech followed the RBNZ decision to hold rates at 2.5 percent yesterday. It is likely that he will wait until March before moving to hike rates, scheduled to be the first G10 central bank to raise rates this year.
NZ facing inflationary pressures
Speaking at the Canterbury Employers' Chamber of Commerce in Christchurch voiced concerns over rising inflation. “In such an environment, there is a need to return interest rates to more normal levels and the bank expects to begin this adjustment soon,” said Wheeler, adding: “We will undertake a comprehensive assessment of the outlook in the next Monetary Policy Statement in March when further information will be available.”
NZD/USD is currently trading at USD0.8114, down 1.29 percent on the week and 0.66 percent on the opening of USD0.8154. The pair recovered to USD0.8161 mid morning but is now in strongly bearish territory.
RBNZ remains hawkish
The Kiwi fell on Reserve Bank of New Zealand governor Graeme Wheeler’s speech overnight, with the central bank head setting out plans to raise interest rates to contain inflationary pressure.
Wheeler’s speech followed the RBNZ decision to hold rates at 2.5 percent yesterday. It is likely that he will wait until March before moving to hike rates, scheduled to be the first G10 central bank to raise rates this year.
NZ facing inflationary pressures
Speaking at the Canterbury Employers' Chamber of Commerce in Christchurch voiced concerns over rising inflation. “In such an environment, there is a need to return interest rates to more normal levels and the bank expects to begin this adjustment soon,” said Wheeler, adding: “We will undertake a comprehensive assessment of the outlook in the next Monetary Policy Statement in March when further information will be available.”
NZD/USD is currently trading at USD0.8114, down 1.29 percent on the week and 0.66 percent on the opening of USD0.8154. The pair recovered to USD0.8161 mid morning but is now in strongly bearish territory.