It was a quiet end to the week for the NZD as localmarkets were closed for ANZAC day. The NZD/USD closedat 0.8580.For the past week, or so, the NZD/USD has traded a fairlytight range between 0.8550 and 0.8640. The top of thisrange was approached soon after the RBNZ’sannouncement on Thursday morning. The NZD initially popped higher on the announcement.The RBNZ did not attempt to talk down the elevatedcurrency. Rather, it simply stated that if a stronger NZDwas to dampen inflationary pressures it could impact onthe speed of future OCR hikes. The market reacted as ifthis provided tacit approval for further NZD strength.
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