Reaction to the appointment of Adrian Orr as RBNZ governor
Westpac's strategist Imre Speizer argues that there is "no fundamental logic" for the NZD's spike to the announcement earlier - saying it could be due to relief that uncertainty over the new governor has been removed.
He also says that NZD CFTC positioning is still short and is now undervalued, so a move higher over the next few weeks makes sense.
But his caveat is that over the longer term, a strong dollar would mean that the kiwi should fall against the greenback.
NZD/USD popped to highs of 0.6906 post-announcement, but is now trading at 0.6889.
