NZD: RBNZ on hold but future easing required - SocGen

FXStreet (Delhi) - Kit Juckes, Research Analyst at Societe Generale, notes that the RBNZ left rates on hold.

Key Quotes

“But Governor Graeme Wheeler said that ‘further easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range’.

The familiar observation about a further NZD decline being appropriate was also mentioned and all in all, there was nothing here to dissuade us from a bearish NZD view.

With oil holding up despite the surge in US inventory levels, short NZD/CAD remains a trade that we like a lot for the medium term.”