Currency talk: Kiwi dollar picked to push 70c against the greenback
CMC's Sheldon Slabbert and NBR's Jason Walls discuss the kiwi dollar pushing 70c against the greenback. With special feature audio.
The kiwi dollar, which is already high against the US dollar, still has further to go, according to CMC Markets trader Sheldon Slabbert.
He says there are a few indications the kiwi will continue to climb against the greenback.
Last month, US Federal Reserve chairwoman Janet Yellen indicated only two more rate hikes were on the way this year – as opposed to the four tipped in December.
But Mr Slabbert says even that’s a little hawkish.
“I would be surprised if we still see two rate hikes this year. I think one is more likely,” Mr Slabbert says.
He says he does not think the US economic data is strong enough to support two hikes this year.
The global commodity market is also experiencing a slight bounce back and Mr Slabbert says this is another factor that will force the kiwi dollar up.
“The commodity-based index has made a technical positive for the first time in about six years,” he says.
“That filters through to the Aussie, kiwi and Canadian dollars, which are all commodity currencies.”
Mr Slabbert says he does not think it is inconceivable to see the kiwi dollar at 72c against the greenback.
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Tue, 12 Apr 2016
Tue, 12 Apr 2016
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Currency talk: Kiwi dollar picked to push 70c against the greenback
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