Much like that faced by our footballers today, it was a bit of an uphill battle for the kiwi overnight. The NZD/USD spent the night shuffling around in a 0.8310-0.8370 range, even as the AUD/USD flew through 0.9400. This contrasting performance of the antipodeans has seen the NZD/AUD give up all of this week’s gains. Yesterday’s November Board minutes showed the RBA taking another small step towards a neutral bias. The tone of the statement was more upbeat than October, citing “mounting evidence that monetary policy was supporting activity”. Lip service was duly paid to the high AUD, and the RBA retained a weak easing bias. However, it seems there is very little intent to act on this bias given the signs of improvement in the Aussie economy.
Read the full report: FX Daily
BNZ