John Rothfield Dollar Quotations

Re-widening of the interest rate differential will see the Australian dollar higher. Rumors of the Medley report that the Fed will stop tightening at 4.75 percent or 5 percent is below market expectations.

Major central banks in the world have talked about hiking rates, so if the Bank of Canada signals they are coming to the end of rate increases, it may push investors to sell the Canadian dollar further.

Bollard is doing the right thing by saying there's a long way to go before there's a cut in rates. There will be an initial reaction in favor of the New Zealand dollar but it hasn't changed our view that the New Zealand dollar is in a serial decline.

The Australian dollar may struggle, simply because we perceive a further narrowing of interest-rate differentials.

This hasn't changed our view that the New Zealand dollar is in a serial decline. The currency is on a depreciation cycle, regardless of whether interest rates go down or not.