RBNZ moving to an easing bias - TDS

Sandeep Kanihama FXStreet Contributor

Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, expects the RBNZ to keep the cash rate on hold at 1.50% at tomorrow's meeting with the Bank shifting to an easing bias, paving the way for a cut at the August meeting.

Key Quotes

“Although GDP and CPI are close to the Bank's targets, we cannot rule out the possibility of the Bank delivering a surprise cut at this meeting to show it is ahead of the curve. OIS is placing less than a 20% chance to this outcome.”

“FX: If the RBNZ cuts, the NZD should should drop 1% or more. From current levels this implies a 0.6550 target. If there is no easing bias, then the NZD should rise 0.5%. From current levels this implies 0.6670.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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