07.07.2016 - The New Zealand dollar has limited potential for growth

Price of the New Zealand dollar showed growth on commodities prices correction after the recent decline, as well as due to the increased demand for the country's government bonds in amid falling yields of US 10-year bonds to their lowest levels in history. We forecast a drop of the New Zealand dollar as the more likely scenario in the medium term due to negative forecasts on commodities market, as well as the expected decrease in interest rates of the Reserve Bank of New Zealand to support the local economy.

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