The RBNZ outcome was indeed quite nuanced as the bank expanded the QE programme by 75% to a massive N$100bn but also extended it by 15 months, the net result of which is essentially continuing asset purchases at the same pace but for a longer time.
They also left foreign asset purchases and negative interest rates on the table, potentially for a later date.
I have to admit I’m a little surprised NZD hasn’t snapped back higher as I thought the market would view the lack of foreign asset purchases and same QE purchase pace as a bit of a disappointment.
I guess positioning is in no way significant and the threat of –ve interest rate policy is deemed credible.
I have squared up my short and will see how things play out from here. The lower USD trend remains in place so expect AUDUSD to find short term support towards 0.7065/75, NZDUSD towards 0.6500
They also left foreign asset purchases and negative interest rates on the table, potentially for a later date.
I have to admit I’m a little surprised NZD hasn’t snapped back higher as I thought the market would view the lack of foreign asset purchases and same QE purchase pace as a bit of a disappointment.
I guess positioning is in no way significant and the threat of –ve interest rate policy is deemed credible.
I have squared up my short and will see how things play out from here. The lower USD trend remains in place so expect AUDUSD to find short term support towards 0.7065/75, NZDUSD towards 0.6500
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