Australia and New Zealand interest rates and the exchange rate is still much room for further decline

Capital Economics on Monday (July 27) in a research report pointed out that Australia and New Zealand interest rates and the exchange rate is still much room for further decline. Chinese forex blog said so.

Kay cast macro representation, is expected to enter in 2016, the Australian dollar will drop to 0.65, NZD / dollar will drop to 0.55; expected the RBA (RBA) cash rate to 1.5% eventually, the RBNZ (RBNZ) official cash rate will fall to 2.0%. The following reasons:

★ With the slowdown in gross domestic product (GDP) growth, both in Australia and New Zealand trade deterioration; significant deterioration in New Zealand GDP.

★ Australia May monthly rate of capital goods imports fell 17.6% in the second quarter showed that investment in plant and machinery and weakness.

★ New Zealand May stagnant residential building permits, another sign that the building boom after the earthquake reconstruction demand-driven drawing to a close.

★ weaker demand in China and Australia and New Zealand will restrict the recent weakness of the currency exchange rates boosted net exports.
Agency: Australia and New Zealand interest and exchange rates are expected to decline further

11:45 GMT, the Australian dollar against the US dollar reported 0.7290 / 93.