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NZD/USD: There be bears…


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FXStreet (Guatemala) – NZD/USD is trading at 0.7781, down -0.09% on the day, having posted a daily high at 0.7792 and low at 0.7776.

0.7800 has contained the rally from the mid point of the 0.77 handle at the start of this week’s business. There is growing optimism for the New Zealand economy and the divergence of Global Central Banks remains compelling and leading the way through the currency board.


However, analysts and research team in a paper prepared by National Australia Bank explained, that “the fact of the matter is”, although growth is apparent in the economy it is noted that actual inflationary pressures are absent. “This has perplexed both the RBNZ and other commentators”.


The analysts continued to explain that unemployment at its current rate (5.4%) would be associated with annual inflation at 2.0%. “Instead, the latter sits at 1.0%, and is picked to remain there, if not slip lower on falling oil prices. Certainly it should not threaten the 2.0% target midpoint until late 2015”.