Negative OCR expected | Forex Factory

  • Negative OCR expected

    From westpac.co.nz Story is in PDF Format

    With Covid-19 set to cause a massive downturn in economic activity, a massive monetary and fiscal response will be required. We now expect the RBNZ will reduce the OCR to -0.5% in November 2020. We also expect an expansion of the RBNZ’s bond buying program, as well as further Government stimulus for the economy. We have updated our economic and financial forecasts: – We now expect a deeper decline in June quarter GDP of 16%, because the Alert Level 3 restrictions are tighter than we previously allowed for. – The country may drop to Level 2 earlier than we previously thought, allowing a more vigorous rebound in ... (full story)

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kingleeny
Apr 28, 2020 1:09am
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What they expect AUD to be opening up with out any limits? Its crazy how much AUD has appreciated against NZD or the USD considering they are only followers or say dependents of other countries economy and yet they are trading like they have no housing problems or their beaches are busy? is their casino open? are they having a spat with china? im short on it. its frustrating as it just doesnt move the way it should. what do you guys think?
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Massimou
May 8, 2020 6:33pm
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Quoting kingleeny
What they expect AUD to be opening up with out any limits? Its crazy how much AUD has appreciated against NZD or the USD considering they are only followers or say dependents of other countries economy and yet they are trading like they have no housing problems or their beaches are busy? is their casino open? are they having a spat with china? im short on it. its frustrating as it just doesnt move the way it should. what do you guys think?
You are right about AUD but the thing we have to pay attention to is AUD is kind of inflation gauge and we are possibly going into hyper inflation phase but there are a lot to be discus about it which not needed here. For now AUD driving by equity market as well as gold! BUT, I think there will be a HL to be make in daily/weekly time frame so your shorts may be appreciated then.
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Trader#F4A8
May 11, 2020 3:24am
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Just be patient... Hold until Friday morning
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Trader#CC7C
May 12, 2020 12:01pm
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Either AUD will pull or NZD will play catch up imo. Leaning towards the latter myself.
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