Financial Markets Wrap

NZD Broadly Tracks Sideways in February

• Risk appetite improves further, supporting global equity markets and commodities
• NZD performance underwhelming in the face of those positive forces
• Some drag in NZD evident from lower NZ rates and a weaker AUD

Strong recovery in risk appetite supports NZD

• Emerging market and commodity currencies like the NZD outperformed in January.
• Change in Fed guidance and positive US-China trade talk vibe supported a strong recovery in risk assets.
• NZ and global rates head lower.

BNZ Financial Markets Wrap

• Global equities plunge; Risk appetite index down to a multi-year low
• NZD underperforms alongside other commodity currencies and risk assets
• NZ rates down to multi-year lows