NZD now in the balance
Ok, the short term sentiment is positive for the NZD after Governor Orr said that the RBNZ are unlikely to need to use unconventional policy. Furthermore, the latest rate meeting was not as dovish as the market feared it may have been which has led to some NZD strength.
After the initial pop, where then?
Now for that to continue we need to see some improving NZD data, something like a pick up in business confidence would be great, as that is a key focus for the RBNZ in making their interest rate decisions. Alternatively, if we see data decline we can expect NZD sellers to step right back in and move the NZD lower
