The NZD/USD softened a little overnight, to touch 0.8440, before returning to sit above 0.8460 this morning. Yesterday’s domestic data showed the highest net immigration in 10 years, We note the RBNZ has increasingly mentioned immigration in its commentary this year. The context has been not just the problematic housing market but things like potential growth and the way this, in turn, influences thoughts on ‘neutral’ interest rates. So the today’s results will only intensify this debate.
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BNZ