 | |  | | NZD/USD: Slide Blamed on RBNZ Price Checking/Selling
San Francisco, Jun 22.
The theory had circulated much of this week that the RBNZ would use thin trading conditions to maximize their intervention efforts. This appears to be the case currently with NZD/USD collapsing to 0.7604 lows with reports of RBNZ price checking and vague talk that they may have sold through a US bank. The NZD/USD bounced back to 0.7635 but there is talk that they are on the offer now at 0.7625.
AUD/NZD has rallied sharply on the move, rising to 1.1109, with offers expected at 1.1120 and yesterday"s highs. The TWI has been at record highs which the RBNZ watches as a measure of the exchange rate policy decisions.
NZD/JPY is at 94.35 currently, dropping sharply from 94.80.
The risk is that the central bank would continue this action in the twilight zone on Monday though the Japanese fund launches next week could still provide a cushion. |  |  |  |  |
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