Milk prices may unravel the popular carry trade of using currencies such as the yen or U.S. dollar to buy higher-yielding New Zealand dollar assets.» Read More
David Greene, Head of Dealing at AFEX Australia, says the Reserve Bank of New Zealand will likely hike interest rates on Thursday, on the back of stable economic conditions.
Khoon Goh, Senior FX Strategist at ANZ and Kathy Lien of BK Asset Management discuss why the Kiwi looks set for further gains after the RBNZ's hawkish statement.
New Zealand's central bank held its key rate at a record low and indicated it would likely stay there into 2014 because of a strong dollar, and the prospect of inflation from a pick-up in earthquake rebuilding and more active housing market.
Fred Gibson, Associate Economist, Moody's Analytics, says New Zealand's central bank will likely start its tightening cycle in the third quarter of next year after keeping rates steady on Thursday.
Hamish Pepper, FX Strategist, Asia Pacific, Barclays Capital expects the RBNZ to start increasing rates in the second half of 2012.