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