NZD: Trump win is USD supportive – BNZ

Research Team at BNZ, suggests that the Trump’s election victory was a surprise and BNZ’s projections embody a stronger USD outlook and at first glance the Trump factor adds weight to that view.

Key Quotes

“We maintain our NZD forecasts of USD0.72 for end-2016 and USD0.67 for end-2017.”

“Trump’s economic policies are more inflationary than the Clinton alternative, driven by more expansionary fiscal policy. This adds to the chance of tighter US monetary policy and a stronger USD. A possible change to taxing offshore company profits could also support the USD.”

“Trump’s trade policy is the biggest concern for the US economy and USD. We’re hopeful that trade policy is only tweaked rather than over-hauled, and in the meantime treat this as only a risk factor for the USD.”