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31 Aug 2015
GDT prices and RBNZ jawboning the bird - RBS
FXStreet (Guatemala) - Analysts at RBS noted the key domestic risk events for the NZD this week.
Key Quotes:
"The next Global Dairy Trade auction in New Zealand takes place next week. The price index for New Zealand’s key export rose at auction in mid-August for the first time in 11 weeks."
"Renewed declines in dairy prices may bring with it increased likelihood of RBNZ currency jawboning."
"The trade weighted NZD has moved sideways since early July – the RBNZ may be uncomfortable with a steady NZD despite a weakening of its terms of trade."
Key Quotes:
"The next Global Dairy Trade auction in New Zealand takes place next week. The price index for New Zealand’s key export rose at auction in mid-August for the first time in 11 weeks."
"Renewed declines in dairy prices may bring with it increased likelihood of RBNZ currency jawboning."
"The trade weighted NZD has moved sideways since early July – the RBNZ may be uncomfortable with a steady NZD despite a weakening of its terms of trade."