AUD/NZD gaining further - here's why

ForexLive nailed this as it happened, back last week on April 21!

Reserve Bank of New Zealand Governor Orr spoke that day, saying:

• RBNZ Gov Orr says again does not rule out negative rates

And, I thought, even more significantly:

• RBNZ Gov Orr says he is open minded on direct monetisation of govt debt

From that post … in bold:

• A central bank buying debt directly from the government issue is not something that will inspire confidence in markets. This will be viewed as a NZD negative.

Sure enough, look at the divergence between the Australian and New Zealand dollars since:

Adding to the fuel this morning was this from WPAC:

• New Zealand - Westpac expect the RBNZ will cut the cash rate to -0.5% late 2020