The NZD edged up overnight, and sits 0.1% higher againstthe USD, at 0.8670.Some of this is a hangover from the RBNZ’s rate hike andstern commentary last week. With NZD currency volatilityhitting fresh seven-year lows yesterday, NZ’s interest rateadvantage continues to present an appealing propositionfrom a carry-trade perspective. Ditto for the AUD,compared to the rest of the world. Price action for bothantipodean currencies was unerringly similar over thecourse of the past 24-hours.
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