The NZD was the strongest performing major currencyovernight, gaining 0.4% against the USD to 0.8670.In a night where bond markets seemed to express a viewthat US, EZ, and UK bond yields would remain low for longer, we find it unsurprising that the NZD outperformed.The combination of subdued US bond yields and ultra-lowcurrency volatility has kept the NZD lofty (as well as theAUD and a swathe of emerging market currencies). Untilthose factors change, it is difficult for the NZD to maintaina downward track, as fundamentals suggest it should.
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