Nzd/usd - Aud/nzd

I thought that was what it was saying, but I couldn't for the life of me understand why anyone thinks .73 is out there any time soon.

A return to even half that level for the Kiwi, and further hikes would simply revisit the economy to what caused it to bottom in the last month. Business confidence would plummet (again), etc.
 
I agree that rates cannot rise that much in kiwi land. However, they are gambling on a revise in expectations and sentiment (even if short-lived and false) that rates will rise. They are hoping the low delta calls will become high delta calls, and then liquidate.
 
Interesting article. I think the market has got ahead of itself at the moment. Take GBP/USD - poor economic environment, no yield play, yet has rallied to highs. The only thing I can think of keeping it up is general dollar weakness and M&A activity. I think the dollar will assert itself by the end of the week, when profit-takers move in.
 
CPI still outside the RB's range, today. Interest rates unlikely to come down this year now as they will want to see 2 quarters of lower inflation before they relax rates. Pair that with the US news that hikes are at an end there...
 
Can use nzherald.co.nz

http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10377960

this is the article. It is stating what they expect CPI to be when announced today - 3.4% which is still outside the range. Also we got a petrol price hike yesterday of 6 cents a litre which is 'fuelling' the speculation of increased CPI for a while to come. Notice a slight change in the attitudes of ANZ bank at bottom of article - a few weeks back they were thinking/hoping for a June cut in rates. Now it looks like that could be out of the question. This rumour/news has underpinned the gradual improvement in the Kiwi that we have been talking of. Inflation ain't beat so no rate drop coming soon and if the currency is slowly improving it may keep the housewives happy.

What trading platform do you find best for AUD/NZD, if you don't mind me asking?
 
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