The U.K. over the past six months shows us how the economy can go from looking quite weak to improving in reaction to a rate cut. It will also occur in New Zealand, so the RBNZ is unlikely to cut aggressively.
More Quotes from Adrian Foster:
Say the RBNZ cuts interest rates three times, which most agree would be aggressive, you still have New Zealand interest rates above 6 percent. In an environment of yield, that will still offer the New Zealand dollar support.Adrian Foster
It's of interest whether he confirms that he thinks he was misinterpreted. It looks like it's hard for him to say otherwise, so that's slightly dollar- supportive.
Adrian Foster
Looking internationally, the market still has a hefty appetite for yield that will support the currency. New Zealand yields are on a similar par with those of Kazakhstan.
Adrian Foster
There's this building case that the BOJ will be changing policy soon. That's the trigger we've been looking for regarding the yen.
Adrian Foster
A strong number will keep alive speculation of more rate hikes. It should give some support to the dollar.
Adrian Foster
There's quite a healthy outlook for the economy and inflationary pressures are fairly subdued. I can't see why they need to do anything. They'll keep the policy statement unchanged.
Adrian Foster
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