21 Jan 2014
Flash: NZD climbs as RBNZ set to raise rates? - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the NZD has strengthened on inflation figures, and suspicions that the RBNZ could be positioned to raise rates.
Key Quotes
"The New Zealand dollar has strengthened modestly in the Asian trading session following the release of the stronger than expected New Zealand inflation report for Q4 2013. The report revealed that the annual rate of inflation accelerated to 1.6% in Q4 2013 from 1.4% in Q3 2013.”
“Non-tradables inflation continues to remain more lively with the annual rate at 2.9% whereas the annual rate of tradables inflation remains in negative territory at -0.3%. The report has served to increase expectations that the RBNZ may raise its key policy at their 30th January policy meeting rather than wait until March.”
“The RBNZ is on the verge of becoming the first G10 central bank to begin raising rates which is supporting New Zealand dollar strength."
Key Quotes
"The New Zealand dollar has strengthened modestly in the Asian trading session following the release of the stronger than expected New Zealand inflation report for Q4 2013. The report revealed that the annual rate of inflation accelerated to 1.6% in Q4 2013 from 1.4% in Q3 2013.”
“Non-tradables inflation continues to remain more lively with the annual rate at 2.9% whereas the annual rate of tradables inflation remains in negative territory at -0.3%. The report has served to increase expectations that the RBNZ may raise its key policy at their 30th January policy meeting rather than wait until March.”
“The RBNZ is on the verge of becoming the first G10 central bank to begin raising rates which is supporting New Zealand dollar strength."