Comments from Deputy Governor of the Central Bank of New Zealand Karen Silk passed. She noted that Cyclone Gabrielle was less inflationary than originally feared and stated that rates must remain paused for a longer period of time. She said she had to be wary of too much tightening policy and that the RBNZ could now hold and see what happens.
NZD/USD Update
´´The Kiwi continues to fall, and while it has lost further ground overnight on most crosses, some of this reflects dollar strength, with the USD DXY rising strongly as bond yields rise there on better data and (albeit slow) progress on debt cap negotiations,” ANZ Bank analysts explained. It is currently trading at 0.6055.
