New Zealand Dollar Must go 4-5% Higher Before RBNZ Intervenes

While the issue of intervention is now a live one, we have some distance to travel before the threat is acted upon.

Global investors are in the mood for risk again it would appear - and this is the kind of news the New Zealand Dollar likes to hear.

A multitude of indicators are showing the New Zealand Dollar is probably peaking, says BNZ's Jason Wong.

The New Zealand Dollar is easily the day's worst-performing currency after it fell in the wake of the Reserve Bank of New Zealand’s August monetary policy event at which the country’s Official Cash Rate was left unchanged at 1.75%.

The Reserve Bank of New Zealand (RBNZ) meets on Wednesday to decide policy, which could impact on the New Zealand Dollar.

 The Pound to New Zealand Dollar (Kiwi) is currently in a short-term downtrend which is broadly expected to continue over the next five days.

 The Pound surged against the New Zealand Dollar (Kiwi) on Wednesday after commodity prices fell and New Zealand employment data flat-lined.

The Pound to New Zealand Dollar pair has been trading sideways since the beginning of June and it reamins within that broad range, trading with an upside bias as the new week begins.