Despite the unanimous expectation that the RBNZ will leave New Zealand rates unchanged on Thursday morning, the NZD market remains a bit nervous. The market bought AUD/NZD aggressively on the break above 1.30 but has been quite quick to off-load again, sending the pair to 1.2950 earlier today before recovering back to the 1.3000 psychological level at time of writing.
Interestingly enough, the big buyer of the pair in recent weeks has been a UK investment bank, probably on behalf of hedge funds. The very same bank put out an aggressive sell recommendation in the last 36 hours, calling for a move back to 1.22/1.23. Perhaps they know that the market is very long, or perhaps they know the same as the rest of us (very little).
