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- Friday, 16 October 2009 20:23:24 GMT New Zealand Dollar Vulnerable To Pullback In Risk Appetite
- Monday, 12 October 2009 22:22:35 GMT New Zealand Retail Sales More Than Double Expectations in August
- Saturday, 10 October 2009 02:28:09 GMT New Zealand Dollar Rally Surviving on Borrowed Time and Strength
- Tuesday, 06 October 2009 18:51:16 GMT New Zealand Dollar US Dollar Exchange Rate Forecast
- Monday, 05 October 2009 02:19:09 GMT New Zealand Commodity Export Prices Rise Most in Over 22 Years
- Friday, 02 October 2009 20:56:52 GMT New Zealand Dollar At Risk of Turn Lower on Extreme Sentiment
- Friday, 25 September 2009 21:39:52 GMT New Zealand Dollar May Forge New Highs with G-20 Help
- Wednesday, 23 September 2009 19:57:03 GMT New Zealand Dollar Maintains Strength Following Q2 GDP Results â Exports May Fall to Lowest Since January 2008
- Wednesday, 23 September 2009 02:21:33 GMT New Zealand Dollar Surges as GDP Unexpectedly Grows in Q2
- Monday, 21 September 2009 23:28:37 GMT New Zealand Current Account Surprises With Surplus in Second Quarter
- Monday, 21 September 2009 03:00:48 GMT New Zealand Service Sector Expands For Second Month But Sales Decline
- Friday, 18 September 2009 22:05:19 GMT New Zealand Dollar To Weaken as Growth Rate Contracts, Trade Falters
- Thursday, 17 September 2009 01:26:06 GMT New Zealand Manufacturing Shrinks at Faster Pace as New Orders Plummet
- Tuesday, 15 September 2009 02:20:40 GMT New Zealand Manufacturing Falls Most on Record in Second Quarter
- Monday, 14 September 2009 00:48:53 GMT New Zealand Retail Sales Unexpectedly Drop in July as Unemployment Rises
- Friday, 11 September 2009 21:26:44 GMT New Zealand Dollar Strength May Be its Own Undoing
- Wednesday, 09 September 2009 23:49:32 GMT RBNZ Rate Decision Provokes Volatility but Falters with Direction
- Wednesday, 09 September 2009 00:42:20 GMT New Zealand Dollar's Run May be Cut Short by RBNZ Rate Decision
- Monday, 07 September 2009 18:14:22 GMT New Zealand Dollar Reaches Fresh 2009 Highs
- Sunday, 06 September 2009 21:47:23 GMT New Zealand House Prices Rise for Fourth Month in August
Commodity dollars like the Canadian dollar and New Zealand dollar slipped for much of Wednesday’s trading session, but the latter saw a surprising bounce following the Reserve Bank of New Zealand’s (RBNZ) rate decision.
Indeed, the RBNZ slashed their Overnight Cash Rate (OCR) target by 100bps to 6.50 percent, which is the sharpest cut since the OCR was introduced in March 1999. This move was in line with expectations, and though RBNZ Governor Bollard said that he expects rates will be lowered further, the New Zealand dollar gained. Why? A closer look at the policy statement shows that Mr. Bollard also suggested that rates could be left steady at their next policy meeting, as he said that further cuts depend on "evidence of actual reductions in domestic cost pressures as well as how the global financial developments play out." Furthermore, during a post-meeting press conference, Mr. Bollard said future rate cuts "won't necessarily be of this size." As a result, the markets are betting that the RBNZ will await additional data before making monetary policy more accommodative, and will do so at a slower pace. This decision may have a major impact on currencies going forward, as the RBNZ has essentially thrown a wrench in the market’s expectations that interest rates would be cut aggressively in coming months by central banks with high overnight lending rates. If we see the New Zealand dollar gain overnight, there will be reason to believe that it may have formed at least a short-term bottom. Since the New Zealand dollar and Australian dollar hold a very tight correlation, this would also bode well for Aussie.
Related Article: USD/CAD Up Nearly 3% on Weak Oil, Retail Sales, NZD Gains Despite Record 100bp Cut by the RBNZ to 6.50%
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