Dep gov in an interview quoted on BBG
NZDUSD has jumped to 0.8686. currently back to 0.8677
- signalling a rate pause would be counter-productive
- speculation of a pause was flattening the yield curve
- July rate decision will be data-driven
- NZD should fall if people were pricing it right
- RBNZ wants to highlight NZD’s weaker fundamentals
- NZD should drop in line with commodities
- NZ terms of trade may be at turning point
So he’s saying that traders are mis-pricing NZD and now traders are ignoring it and just clinging to interest rate yield as they do elsewhere too
Funny ol’ world
