20 Jul 2015
Be careful how to interpret NZ PM Key headlines
FXStreet (Bali) - Comments from NZ PM Key on the New Zealand Dollar, saying the currency has fallen faster-than-expected, have caused a bit of a stir in the bird, appreciating more than half a cent after accumulating 12 losing weeks out of the last 13, and with prospects not looking any better as the market prices in an aggressive easing cycle by the RBNZ before year-end.
Flippant remark by NZ PM?
Headlines from PM Key may have been slightly misinterpreted if one is familiar with NZ PM's current line of thinking. It could have simply been a tongue-in-cheek remark with flippant intent that wasn't potentially intended to sound as the market saw it published.
Numbers don't add up for NZ PM to sound to serious
NZ PM Key has previously stated that 65c was a level that may be considered 'fair value', however, since the collapse of dairy prices - currently 35 to 40% lower - it is almost guaranteed that Key's view on the Kiwi is, if anything, for a lower level, probably in the sub 60c vicinity. That said, it has given some perma bears a chance to take profits ahead of the RBNZ, despite it looks highly unlikely that such headline, coming from Key, will do any harm to the trend.
Flippant remark by NZ PM?
Headlines from PM Key may have been slightly misinterpreted if one is familiar with NZ PM's current line of thinking. It could have simply been a tongue-in-cheek remark with flippant intent that wasn't potentially intended to sound as the market saw it published.
Numbers don't add up for NZ PM to sound to serious
NZ PM Key has previously stated that 65c was a level that may be considered 'fair value', however, since the collapse of dairy prices - currently 35 to 40% lower - it is almost guaranteed that Key's view on the Kiwi is, if anything, for a lower level, probably in the sub 60c vicinity. That said, it has given some perma bears a chance to take profits ahead of the RBNZ, despite it looks highly unlikely that such headline, coming from Key, will do any harm to the trend.