Kiwi is down sharply, corresponding with a big
rally in New Zealand bonds. RBNZ surprised
markets with a 50 bp rate cut that was larger
than expected. Cited headwinds from slowing
global growth, and Governor Orr said rate cut did not rule out further action.
We expect Kiwi to fall further, so selling
near pullback levels is our strategy.
rally in New Zealand bonds. RBNZ surprised
markets with a 50 bp rate cut that was larger
than expected. Cited headwinds from slowing
global growth, and Governor Orr said rate cut did not rule out further action.
We expect Kiwi to fall further, so selling
near pullback levels is our strategy.