28.01.2016 - We expect a further fall in prices of NZD/USD

The Reserve Bank of New Zealand yesterday decided not to change the settings of monetary policy in the country. As a result, the interest rate remains at 2.50%. In addition, in the statement of the bank were noted the risks associated with the housing market in a country where prices continue to rise, and also were voiced concerns about the Chinese economy, which is a key partner of the country. Hinting at a possible reduction in interest rates this year, in the case of the absence of signs of rising inflation, has led to a reduction in the New Zealand dollar, which according to our forecasts will continue to target levels at 0.6250 and 0.6000. Our medium-term outlook is negative and we recommend holding short positions.

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