New Zealand Dollar Rates Remain Stable

NZD yawned as the Reserve Bank left rates untouched (in line with consensus projections). The central bank governor Alan Bollard provides some color on the New Zealand recovery, noting a recovery in export partners (which he believes is sustainable), flattening consumer demand and a recent increase in housing prices. He goes on to note that sustained growth is contingent on the export sector and household savings.

Nothing revolutionary here as the focus on the current account continues but we have to believe volatility in NZD rates is currently being underpriced. With the strength and diversity of various China bear factions at this point, it's almost a foolproof bullish indicator. Additionally, some exports may be more downturn-proof than we believe (e.g. milk powder, see the ZH piece on NZ May trade data). The flip side also begs a simple question: how much lower can they go? It is almost inconceivable for NZD to go ZIRP.

Comments

[sabrinafr1:]

HI
i would apreciate an advice. i am in europe and have an account in euro in nz. i need to change this money for repay a (part of a) morgage in nz. but i see the nz dollars is growing.. what to do? to change the euro now? later? i am concern to loose too much money in the exchange rate.
If someone specialised can give me an advice , i realy would apreciat ehis/her help.I am a low income earner and this saving mean alot to me.
thank you !www/ [e-mail]

Sep 24 03:02 AM