NZD Rallying as RBNZ Left Policy on Hold - BBH
Research Team at BBH, notes that after the Japanese yen, the New Zealand
dollar is the strongest of the majors and is up about 1.6%, having been
up closer to 2% earlier as the RBNZ left policy on hold.
Key Quotes
“Although
this seemed like the odds-on more likely decision, as we argued, the
OIS market had a little more than a third of a cut discounted. There
was nothing hawkish in the statement. There were the usual complaints
about the currency's strength, and the central bank was clear that
further easing may be "required" to bring inflation toward the middle of
its target range.
Today seems to be one of the few occasions
that the Australian dollar followed the New Zealand dollar. Soft
inflation reported yesterday weighed on the Aussie, pushing it down two
cents to $0.7550. Dragged higher by the Kiwi, it reached almost $0.7660
before running out of steam.”
