Financial Markets Wrap

NZD Resilient In October As Equity Markets Tumble

• Global equity markets tumbled in October as risk appetite collapses
• Against that backdrop, the NZD was resilient, down only 1½%, while the TWI was flat
• US Treasuries weren’t a safe-haven as rates rose across the curve, while NZ rates fell

NZD Flat In September

NZD reached a multi-year low during September but ended the month flat...Yen under pressure, sees higher NZD/JPY but other NZD crosses flat...Higher interest rates for the month, while NZ-US rate spreads reach a record low

BNZ Financial Markets Wrap

- US-China trade tensions escalate; Emerging market currencies under pressure
- Global and domestic forces see NZD reach multi-year lows on some crosses
- Easier policy priced into NZ curve and NZ-global rate spreads narrow further