The RBNZ hiked rates but the New Zealand dollar plunged early in Asia-Pacific trading. On Wednesday, the Australian dollar led the way while the pound lagged in the sixth day of declines. Japanese trade balance is due later. Our Premium subscribers trades long AUDNZD & short NZDUSD yesterday are near their final targets. For access, click on the charts and trades of the Premium Insights.
A hike from the RBNZ wasn't a sure thing – the OIS market was only pricing an 86% chance and 1 of 15 economists surveyed by Bloomberg predicted no change. Yet when Wheeler boosted rates to 3.50% from 3.25% the kiwi plunged to 0.8610 from 0.8700.