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NZ central bank urged to match Aust interest rate

Discussion in 'General Investing Discussion' started by Simon Hampel, 20th Jul, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    Since we've had some recent discussion about the currency ...

    NZ central bank urged to match Aust interest rate - ABC News (Australian Broadcasting Corporation)

  2. Tropo

    Tropo Well-Known Member

    17th Aug, 2005
    ALSO :

    "US Dollar: Waiting for the Next Big Catalyst, What Could it Be?

    As a big proponent of transparency, Federal Reserve Chairman Ben Bernanke had no surprises for the market when he delivered his testimony on the economy and monetary policy to the Senate today. The question and answer session continued to center on the problems in the sub-prime sector and Bernanke responded by reiterating the Fed’s growing concern that the problems in housing could get worse before they get better. He even went so far as to say that sub-prime losses could hit $50-100 billion. This concern is the main reason why the market did not react to the more optimistic minutes from last month’s monetary policy meeting. Bernanke’s take is a far more accurate and current account of how the Fed really feels. Despite a larger drop in leading indicators and a much weaker than expected Philly Fed manufacturing survey, the dollar failed to budge. This was due to the fact that oil prices continued to rise while jobless claims were much lower than expected last week. As long as the labor market holds steady, the economy could still recover. In the near term, the dollar looks prime for a breakout against both the Euro and Japanese Yen. What could cause the next big move? Housing and the Dow. With everyone focusing on the contagion effect of sub-prime problems, next week’s existing and new homes sales will be particularly important.
    Also, the Dow is struggling to stay above 14,000. If that proves to be unsurpassable resistance, then a reversal in US stocks could also lead to big movements elsewhere in the currency markets. "