Short NzdJpy at 69.100 TARGET PRICE FIBO LEVEL.
DOVISH OUTLOOK ON NZD ECONOMIC: Official Cash Rate 1% CUT TO 0.75%
China's producer price index declined by 1.6 percent year-on-year in October 2019.
The outlook for the New Zealand dollar is particularly grim. This week's softer labor market numbers and ongoing trade uncertainty boosted the odds of an interest rate cut by the Reserve Bank to 64%. Even if the RBNZ leaves rates unchanged, their outlook will gloomy as they leave the door wide open to an early 2020 cut. Given the level of uncertainty in the global economy, the actions taken by the RBA, recent NZ data and the fact that this is the RBNZ's last meeting of the year, there's a very good chance they will decide to bring rates down to match Australia's 0.75% level. The Australian and Canadian dollars also ended the week with losses. Creditsource: Kathy Lien Managing Director of FX Strategy BK Asset Management
DOVISH OUTLOOK ON NZD ECONOMIC: Official Cash Rate 1% CUT TO 0.75%
China's producer price index declined by 1.6 percent year-on-year in October 2019.
The outlook for the New Zealand dollar is particularly grim. This week's softer labor market numbers and ongoing trade uncertainty boosted the odds of an interest rate cut by the Reserve Bank to 64%. Even if the RBNZ leaves rates unchanged, their outlook will gloomy as they leave the door wide open to an early 2020 cut. Given the level of uncertainty in the global economy, the actions taken by the RBA, recent NZ data and the fact that this is the RBNZ's last meeting of the year, there's a very good chance they will decide to bring rates down to match Australia's 0.75% level. The Australian and Canadian dollars also ended the week with losses. Creditsource: Kathy Lien Managing Director of FX Strategy BK Asset Management