The New Zealand Dollar had a strong week, surprisingly finishing best among the majors, as the Reserve Bank of New Zealand kept its key interest rate on hold at 2.50%, bucking some dark horse expectations for a rate cut mainly due to regional weakness in Australia and China, both of which are vital trading partners for New Zealand. But with risk-aversion prevalent, as confirmed by the drop in precious metals and equity indexes, and some contradictory commentary from the new RBNZ head honcho, the Kiwi’s gains weren’t able to extend further. Despite the Kiwi’s outperformance this week, we remain neutral, though weighted to the upside.
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