NZD bottoming out? – BBH

The New Zealand dollar appears to be trying to bottom from a technical point of view, but the political/policy headwinds are a deterrence, according to analysts at BBH.  

Key Quotes

“Comments from the Finance Minister give the bears little reason to fear official concern despite 10% slide in the Kiwi over the past three months.  The moves to deter foreign speculation (investment?) in New Zealand real estate is seen cutting into an important source of demand for the currency.  That said, we continue to suspect that just as the market overreacted to Trudeau's victory in Canada and his effort to buck the new fiscal orthodox and stimulate, the market may be exaggerating the negatives of the new government, like giving the central bank a dual mandate.”