ANZ: grim outlook for NZD
ANZ expects NZD to remain under negative pressure. The analysts have reduced forecast for Fonterra 2014/15 payout to $4.85/kg (from $5.25). This is well below the average cost of production for farmers, and will have significant implications for the wider economy and monetary policy.
According to ANZ, the Reserve Bank of New Zealand won’t raise rates for a considerable time: the specialists placed their call for a March 2015 RBNZ rate hike “under review”.
These conclusions allow an assumption that the downtrend in NZD/USD will continue.