The NZD has spent most of the offshore session licking its wounds following the beating it took at the hands of the RBNZ yesterday. After sliding ½ cent following the Governor’s speech, the NZD/USD consolidated in a 0.7950-0.8000 range overnight.
It wasn’t so much the formal introduction of the RBNZ’s LVR limits yesterday (which wasn’t a surprise), but the language accompanying their introduction, that did the damage to local swap yields and the NZD.
Read the full report: FX Daily
BNZ