The recent moves in the NZD have been more about major flows rather than interest rate expectations, nevertheless the much lower than expected number (-0.3% QoQ Vs +0.4%) will be giving AUD/NZD bears some cause for reflection. The market had fairly limited expectations of any NZ rate moves this year, and overall NZ rates are not expected to fall by anymore than 25 bps with Australian rates expected to fall by 50/75 bps. This number might change these expectations.
NZD/USD fell from .8070 to .8020 in the wake of the numbers and is now consolidating around the half-way mark of this fall.
