Currency talk: Penny for your thoughts, Mr Wheeler?
Jason Walls and CMC's Sheldon Slabbert discuss the global currency market news. With special audio feature.
Hot Topic
Hawke’s Bay
The Reserve Bank’s review of the official cash rate (OCR) and the release of a monetary policy statement next week will be of much interest to the market.
Since the OCR was left unchanged at 2.5% on January 28, there have been many economic developments.
In early February, Reserve Bank governor Graeme Wheeler rounded on critics who took him to task for continually missing the price inflation target over recent years.
A few weeks later, inflation expectations slumped to the lowest levels in 20 years.
CMC Markets trader Sheldon Slabbert says all these factors will add up to make next week’s statement an interesting one.
“We don’t expect any cuts in the interest rate at this time,” he says.
“But we do expect a slightly more dovish statement.”
He says in looking at the foreign markets, currency wars are still going and there are few signs of that dissipating.
“Global sentiment certainly drives the kiwi dollar quite a bit and that outlook is certainly not rosy.
“I would expect the kiwi dollar, in the near term, to not push past 68c against the US dollar, and for the downward pressure to remain there.”
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Currency talk: Penny for your thoughts, Mr Wheeler?
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