Steen Jakobsen
The Bank of Japan has abandoned quantitative easing and the European Central Bank may taper its bond-buying programme, so what is the role of central banks in 2017, asks Saxo Bank’s chief economist Steen Jakobsen.
Squawk / 17 July 2016 at 22:56 GMT
Managing Director / Technical Research Limited
New Zealand
NZDUSD slumped from 0.7150 to 0.7080 this morning after the June quarter CPI number came in 0.4% and the annual rate the same.

As shown in the chart below, the annual rate has risen slightly but is still a long was from the Reserve Bank of New Zealand’s 2% target.

The RBNZ’s forecast had been for a quarterly number of 0.6%, while the market expectation was 0.4% to 0.5%.

Traders won’t have long to hear what the RBNZ thinks of the inflation outlook. On Thursday the Bank will issue a special “Economic update”. While no change to the 2.25% policy rate will be announced (that will come in the regular Monetary Policy Statement on Aug 11), the Bank is clearly unhappy with the persistent strength of NZDUSD and they will try to jawbone it down on Thursday. The cross has weakened in the last couple of days in anticipation. However, things aren’t as clear cut as they seem. See here
17 July
Patto Patto
What's your call on NZDAUD now Max ?
17 July
Max McKegg Max McKegg
My forecast of a Major Reversal in the AUDNZD cross rate is looking promising so far. My Updated Analysis appears below. Click to enlarge.
18 July
OrofitAccumulator OrofitAccumulator
I like your analysis on this cross Max


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