The NZD has been one of the few currencies that hasn’t been buoyed by the retreating USD tide overnight. Instead, the NZD/USD basically shuffled around in a sideways 0.8275-0.8340 range. The kiwi’s underperformance probably reflects: 1) a reassessment of just how hawkish yesterday’s RBNZ Governor Wheeler’s op-ed was. Notably, interest rate markets barely budged in response. Two year swap yields continued to flat-line around 3.44%, keeping NZ-US swap differentials unchanged around 310bps; and 2) another slug of NZD/AUD selling by speculative accounts
overnight.
Read the full report: FX Daily
BNZ