Currency talk: Jam-packed week of data ahead for markets
CMC Markets trader Sheldon Slabbert and NBR's Jason Walls discuss what will be a volatile week in the currency market. With special feature audio.
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The kiwi dollar is in for a roller-coaster week as the combination of the GlobalDairyTrade (GDT), producer price index and ANZ consumer confidence will inevitably shake the market around.
CMC Markets trader Sheldon Slabbert says all this data will be important for the kiwi dollar.
“As far as dairy goes, it’s the last GDT before Fonterra sets its first estimate for the dairy payout this year,” he says.
Fonterra’s forecast milk price payout is $3.90kg/MS – the average farmer is estimated to need a payout of about $5.20 a kilo of milk solids to break even.
Mr Slabber says this could be a deciding factor in whether the Reserve Bank holds the official cash rate or not at its June meeting.
“If the Reserve Bank does stay on hold, and the Reserve Bank of Australia cuts on June 7, that could have a significant impact on the kiwi Aussie cross rate.”
The kiwi dropped slightly against the greenback late last week amid upbeat retails sales data from the US.
Sales were up 1.3% in April, ahead of the 0.8% forecast.
Although this data would come as good news for the US Federal Reserve, Mr Slabbert is not convinced it will be enough to prompt the Fed to hike rates in June.
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NBR Radio
Tue, 17 May 2016
Tue, 17 May 2016
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Currency talk: Jam-packed week of data ahead for markets
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