NZD/USD fell 75 pips following yesterday’s RBNZ MPS and although the changes from Feb were minor (a modest 10bp drop in one point on the OCR track, saying the OCR could go “up or down”), they were certainly in a dovish direction, according to Imre Speizer, Research Analyst at Westpac.
Key Quotes
“Markets had long adopted a more hawkish OCR outlook (red line on chart across), so the 75 pip fall is understandable.”
“From here we should go back to USD watching, with an occasional glance at long speculator positioning (CFTC).”
“We are comfortable with our year-end forecast of 0.68.”
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