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
NZD Consolidates Through July
Currency markets were relatively stable through July, with low volatility across the key majors. CNY was a notable exception, with significant weakness evident, encouraged by an easier monetary policy stance adopted by the PBoC. At times, there were spillover effects for the NZD, but overall it maintained its poise and traded in a tight range, showing signs of consolidation through the month after the steep fall from mid-April to end-June.
NZD Struggles In June
The NZD showed a broadly based fall over June as global and domestic factors weighed...Fresh 2-year low reached for NZD/USD...NZ-US rate differentials continued to fall