Nzd/usd - Aud/nzd

The NZD will be tracking lower as the move into JPY occurs. buys on the yen will come from sells on the NZD/JPY carry. The question is how low will this go? I'm hoping for a retest of the 60 mark.
 
Absolutely. But if it goes down there within reach, expect a reach for the 60 level. Historically, the 60 level is still rather high.
 
Sure......if it breaks 60 cents then all bets are off and you are looking at 57-58 cents. Down at these levels inflation is going to hog the spotlight again, but it may hit the point where Bollard can do nothing but sit on his hands and keep quiet. At this level, if he raises rates to keep inflation down he will push business and the economy into a very tight corner and then recession is back on the table. I think he will complain about overspending by Joe public, bemoan the risk of more inflation, but eventually sit on his hands and hope the market reaches a balance somewhere along the way....
 
Quote from graemem:

..... Also we got a petrol price hike yesterday of 6 cents a litre which is 'fuelling' the speculation of increased CPI for a while to come. ....
More...

and today another 3 cents added.... (NZD 1.759)

still well below the price in The Netherlands (Euro 2.32 which works out at almost double of NZ petrol price)

Maria
 
You must log in or register to reply here.
Back
Top