Thursday, August 11, 2016

Focus on RBNZ meeting (Thu, 5am SG/ KL time) early tomorrow. We are expecting a 25bps cut, accompanie





FX Research
by Saktiandi Supaat


Looking for Action from RBNZ





Focus on RBNZ meeting (Thu, 5am SG/ KL time) early tomorrow. We are expecting a 25bps cut, accompanied with a dovish statement to elaborate that the door remains wide opened for more cuts. We do not rule out the possibility for a bigger than 25bps cut. With 25bps cut 100% priced in, question remains how much surprise can RBNZ deliver to send the Kiwi lower. RBNZ has been explicit in its intent for a lower exchange rate (given that its exchange rate is 6% higher than assumed on TWI basis)...

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