NZD/USD up 66 pips to 0.6411
The New Zealand dollar touched the highest since Aug 29 today as the hours count down toward the RBNZ decision.
The pair has climbed for the past two days on better risk sentiment and a rebound in commodity prices but what happens next will depend on what RBNZ Governor Wheeler does today.
What's in little doubt is that he will cut rates. All 17 economists surveyed by Bloomberg forecast a cut.
I wrote a preview of the RBNZ decision earlier this week and Eamonn also shared his thoughts earlier today.
This chart comes from @kathylienFX and underscores why few are expecting a rate cut beyond today.
NZD/USD
For the New Zealand dollar, the break above last week's high of 0.6415 today is a positive signal. The upbeat assessment from the Bank of Canada is another good sign.
Commodity currencies took a deep hit in the turmoil starting in late August but those fears have ebbed and the RBNZ outlook is likely to reflect that. The pair has been aggressively sold in the for the past three months and any hint of optimism would be plenty of reason to buy the kiwi.
