“The dollar got sold off and then rallied back to the levels prior to the news. The jobless figure is important and a strong number will keep alive speculation of more rate hikes.”
“Looking internationally, the market still has a hefty appetite for yield that will support the currency. New Zealand yields are on a similar par with those of Kazakhstan.”
“Say the RBNZ cuts interest rates three times, which most agree would be aggressive, you still have New Zealand interest rates above 6 percent. In an environment of yield, that will still offer the New Zealand dollar support.”
“The U.K. over the past six months shows us how the economy can go from looking quite weak to improving in reaction to a rate cut. It will also occur in New Zealand, so the RBNZ is unlikely to cut aggressively.”
“Something like this comes out, people have a natural reaction to square their currency positions if they're on the wrong side of them. When there's news flow and people are uncomfortable with it, they chop out and that gives you the immediate reaction.”
“There's quite a healthy outlook for the economy and inflationary pressures are fairly subdued. I can't see why they need to do anything. They'll keep the policy statement unchanged.”
