NZD
The NZD/USD has shed a little over ½ cent over the past 24 hours, dragged lower by a weaker AUD in the wake of yesterday’s surprise RBA rate cut. Notably, the NZD/AUD has been unable to sustain its post RBA gains. After leaping to 3½ year highs around 0.8350, the cross now trades closer to 0.8300.
The AUD has been the weakest performing currency over the past 24 hours. Not only did the RBA’s 25bps cash rate cut (to an all-time low of 2.75%) surprise the consensus, but it appears the RBA has left its powder dry to do more. Indeed, investors have latched onto the line that only “some” on the Board’s scope to ease has been used. So the easing bias remains, and OIS markets have dutifully responded by pricing in another 60bps or so of further RBA easing.
Click here to read the full report: FX Daily
NBZ