ANZ on the Reserve Bank of New Zealand rate cut this morning:

  • Decision was as expected (here is ANZ yesterday ... ANZ: RBNZ will cut tomorrow, may remove "unjustified", "unsustainable" comments on NZD)
  • Statement contains a clear easing bias
  • Perhaps not as dovish as some had expected
  • This the RBNZ will cut again in September

Outlook for AUD/NZD:

RBNZ DAY...Yesterday's Q2 CPI and Governor Stevens both reinforced the notion that the RBA has a relatively high hurdle on its easing bias

The RBNZ eased this morning, demonstrating the divergence, but positioning is a short-termhurdle.

Expected range: 1.1050 - 1.1200

Earlier:

  • NZD/USD orderboard
  • Westpac on the RBNZ decision & targets for NZD/USD & AUD/NZD
  • NZD after the RBNZ cut decision - levels to watch
  • RBNZ cuts rates by 25 basis points