FX:NZDUSD New Zealand Dollar/U.S. Dollar
There are two things that significantly undermine carry appetite: smaller returns and greater risk. The New Zealand Dollar - whose position as a major is founded largely on its carry potential - is facing both. Volatility in the FX market may have cooled somewhat, but it is still feeling a lasting buoyancy. Meanwhile, the market is certain that the RBNZ will cut rates next week another 25bps to 3.00%.