Westpac's market strategist, Imre Speizer, with some reaction to the RBNZ decision earlier
The RBNZ kept rates steady earlier here but adjusted its inflation outlook lower, as the dovish stance leaves open the possibility of a rate cut by the central bank.
Speizer says that the US dollar's performance will drive the direction of NZD/USD now, as he says that the weakness in the NZD was "roughly fair" and reflects the dovish changes in the policy statement.
He argues that the fall in the kiwi is now "fully priced", but sees NZD/USD trading at about 0.6800 by year-end - mostly due to a rising US dollar.
