Flash: RBNZ cash rate left – TD Securities

FXstreet.com (London) - Annette Beacher, Head of Asia-Pacific Research note that the cash rate was left at the record low of 2.5% and the Governor said “Despite having fallen over the past few weeks, the NZD remains overvalued”. She said that while this was entirely as expected the NZD reversed the pre-MPS rally to briefly dip to NZD/USD 0.7933.

NZD/USD remains above the weeks open

She also highlights that while RBNZ Governor Wheeler and the Australian employment report had the potential to influence trading during the Asia-Pac region, it was the collapse in the Nikkei that garnered the most interest, falling up to 800 points at one stage. Despite the clear risk-off session, AUD and NZD are “only” a cent lower compared with the lofty peaks reached overnight and remain higher than Monday’s opening levels.