The 'ditch' is the sea that separates Australia and New Zealand, and it looks like monetary policy might be separating the two also.

Its a small wedge only, both the RBA and RBNZ are in easy mode, but the RBNZ appears more so.

Yesterday Reserve Bank of Australia Governor Lowe left the door open to further rate cuts, but also let us know the Bank was in watching and waiting mode:

Be clear, rates are not going up for a long time.

At the Reserve Bank of New Zealand its a slightly different story, the Bank is in more active loosening mode. Earlier in the week the RBNZ casually mentioned they were examining alternatives for unconventional policy:

That was an eyebrow raiser indeed and the NZD has been heavy ever since. No, there will be no NZQE in the near term, but the RBNZ letting us know they are talking about it is a clear sign there is more easing to come from the Bank, and soon. The next meeting is August 7, expect a rate cut.

Australia and New Zealand dollars RBA RBNZ