RBNZ attempts to ‘jawbone’ the kiwi lower – ANZ

RBNZ attempts to ‘jawbone’ the kiwi lower are trumping what looked on the surface of it to be a less dovish-than-expected MPS, according to analysts at ANZ.

Key Quotes

“We were surprised that the RBNZ didn’t lower its OCR projections to flat, but nonetheless, it remains very neutral and we are a long way off hikes; and the effect of jawboning tends to be very short-lived. For now, we believe much of the adjustment lower is now complete. The USD is not benefitting from Korean tensions, US PPI data last night was disappointing, and if we see US CPI follow suit tonight then NZD is likely nearing near-term lows.” 

“Support 0.7250 Resistance 0.7400.”