The NZD/USD fell to .7200 earlier this morning as AUD/NZD buying set the tone but talk of buying by the Bank of China has seen the NZD/USD rally sharply to .7270.
China is a very sophisticated player in the FX market and they realise fully that showing themselves openly in the market will have an immediate effect. If they are serious about buying large amounts of NZD/USD then I don’t think they will be sitting on the bid on a Monday morning in thin Tokyo-less markets. Perhaps some of their traders are bored and are having a ‘play’.
