By FXEmpire.com
Analysis and Recommendation:
The NZD/USD
Governor Alan Bollard kept the official cash rate on hold at a record-low 2.5 percent.
New Zealand’s monetary policy statement comes as Greece prepares to go to the polls for the second time in six weeks on June 17.
Greek politician Alexis Tsipras said he expects the European Union will do all it can to keep Greece in the euro even if his left-wing Syriza party wins the election and seeks to repeal austerity measures that are a condition of bailout funds.
The official RNZ statement read as follows:
The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.
Reserve Bank Governor Alan Bollard said: “New Zealand’s economic outlook has weakened a little since the March Monetary Policy Statement.
“Political and economic stresses in Europe, along with a run of weaker-than-expected data, have seen New Zealand’s trading partner outlook worsen. Furthermore, there is a small but growing risk that conditions in the euro area deteriorate more markedly than is projected in the June Statement. The Bank is monitoring euro-area developments carefully given the potential for rapid change.
“Increased agricultural production and the weakened global outlook have driven New Zealand’s export commodity prices lower. The resulting moderation in export incomes, although partially offset by depreciation in the exchange rate, will weigh on economic activity in New Zealand. Fiscal consolidation is also likely to constrain demand growth going forward.
“Offsetting these negative influences, housing market activity continues to increase, supported by recent reductions in mortgage interest rates. In addition, repairs and reconstruction in Canterbury are expected to substantially boost construction sector activity in coming quarters. Aggregate GDP growth is projected to pick up slightly to just over 3 percent next year. Given this economic outlook, inflation is expected to settle near the mid-point of the target range.
“It remains appropriate for monetary policy to remain stimulatory, with the OCR being held at 2.5 percent.”
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Economic Data for June 13, 2012 actual v. forecast
|
Date |
Time |
Currency |
Importance |
Event |
Actual |
Forecast |
Previous |
|
Jun. 13 |
00:00 |
JPY |
BoJ Governor Shirakawa Speaks |
||||
|
01:30 |
AUD |
Westpac Consumer Sentiment |
0.30% |
0.80% |
|||
|
06:30 |
EUR |
French CPI (MoM) |
-0.1% |
0.2% |
0.1% |
||
|
07:00 |
EUR |
German CPI (MoM) |
-0.2% |
-0.2% |
-0.2% |
||
|
07:00 |
EUR |
German CPI (YoY) |
1.9% |
1.9% |
1.9% |
||
|
08:15 |
CHF |
PPI (MoM) |
-0.2% |
-0.2% |
-0.1% |
||
|
10:00 |
EUR |
Industrial Production (MoM) |
-0.8% |
-1.0% |
-0.1% |
||
|
13:30 |
USD |
Core PPI (MoM) |
0.2% |
0.2% |
0.2% |
||
|
13:30 |
USD |
Core Retail Sales (MoM) |
-0.4% |
0.0% |
-0.3% |
||
|
13:30 |
USD |
PPI (MoM) |
-1.0% |
-0.6% |
-0.2% |
||
|
13:30 |
USD |
Retail Sales (MoM) |
-0.2% |
-0.2% |
-0.2% |
||
|
13:30 |
USD |
PPI (YoY) |
0.7% |
1.1% |
1.9% |
||
|
13:30 |
USD |
Core PPI (YoY) |
2.7% |
2.8% |
2.7% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jun 15 |
12:30 |
USD |
Empire State Manufacturing Index |
17.1 |
|
13:00 |
USD |
TIC Long-Term Purchases |
36.2B |
|
|
13:15 |
USD |
Capacity Utilization Rate |
79.2% |
|
|
13:15 |
USD |
Industrial Production m/m |
1.1% |
|
|
13:55 |
USD |
Prelim UoM Consumer Sentiment |
79.3 |
Click here a current NZD/USD Chart.
Originally posted here
