You know it’s deathly quiet in the market when the Kiwi is the prime mover.
The seemingly unstoppable upward move in NZDUSD over the past few days has continued this morning and just posted highs of 0.8624 with NZDJPY at 86.20
Various reasons for the demand as Eamonn and I have posted previously
- the expectation of tighter monetary policy due to rising house prices, exacerbated today by a 2% m/m increase
- fin min English said today that if house prices go up then interest rates must go up
- outflow from japan into risk classes
- reported addition of Kiwi bonds into the Citi World Govt Bon Index
Seems it wasn’t so long ago all was doom and gloom on the Kiwi but it’s a brave man who backs against it now
