NZD hit hard by RBNZ – BBH

Of the major currencies, the New Zealand dollar has been the hardest hit and is off just shy of 1% as the market responded to stepped up warnings by the central bank, explains the research team at BBH.  

Key Quotes

“After leaving rates on hold, as widely expected, RBNZ officials said that a weaker currency was "needed."  Last time, officials said a weaker currency would be "helpful." There is some thought that the rhetoric was a prelude to intervention.  The New Zealand dollar is recording a large outside day and a close below yesterday's low (~$0.7310) is needed.  We see near-term potential extending toward $0.7200.”