23 Oct 2014
NZD to remain relatively vulnerable - Societe Generale
FXStreet (Łódź) - Kit Juckes, Global Head of Currency Strategy at Societe Generale remains bearish on NZD/USD and AUD/USD in the light of the Chinese growth slowdown.
Key Quotes
"The biggest move overnight was a 1% fall in the NZD/USD rate as New Zealand's inflation rate fell to 1% (from 1.6%)."
"The upward channel the Kiwi has been trading in since hitting its low in late September is now being threatened and a break of 0.78 probably signals the start of renewed weakness."
"As China's growth slows, we remain bearish of both NZD/USD and AUD/USD but a long-term theme has been the relative vulnerability of the New Zealand dollar."
"Today's data will trigger a re-think about the interest rate outlook and that in turn can see the longer-term trend towards a return to AUD/NZD 1.20 resume."
Key Quotes
"The biggest move overnight was a 1% fall in the NZD/USD rate as New Zealand's inflation rate fell to 1% (from 1.6%)."
"The upward channel the Kiwi has been trading in since hitting its low in late September is now being threatened and a break of 0.78 probably signals the start of renewed weakness."
"As China's growth slows, we remain bearish of both NZD/USD and AUD/USD but a long-term theme has been the relative vulnerability of the New Zealand dollar."
"Today's data will trigger a re-think about the interest rate outlook and that in turn can see the longer-term trend towards a return to AUD/NZD 1.20 resume."