Local determinants of the Kiwi dollar’s direction (interest rate movements, dairy prices and overall economic performance) are expected to play a reduced role in influencing the forex market over coming weeks. There is no fresh domestic news and recent monetary policy developments are already priced-in to the NZD/USD exchange rate at 0.7140. The FX market is expecting a 0.25% OCR cut this Thursday at the RBNZ’s Monetary Policy Statement. The markets also expect a confirmation from the RBNZ that they will cut again as the currency remains well above their assumed levels to get inflation back above the minimum requirement/limit ... (Read the full story)
