Antipodean near-term growth indicators have turned decidedly wobbly - ANZ
|Analysts at ANZ Bank New Zealand Limited ("ANZ") explained that the US and Canadian economies are performing strongly at present and are generating inflation while for the antipodeans has emerged.
Key Quotes:
"Some of the factors driving both growth and inflation are perhaps of questionable sustainability, but it is nonetheless quite a different picture from both New Zealand, where near-term growth indicators have turned decidedly wobbly, and Australia, where all eyes are on the housing downturn and the impact it will have on the broader economy."
"With a non-trivial chance of OCR cuts now priced into New Zealand markets, but rising cash rates priced in the US, Canada and to a lesser extent, the UK, the NZD remains friendless."
"While perhaps set for a bit of a breather after a 7c fall in four months, we are forecasting NZD/USD -4c at 0.62 by year end.
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