Antipodean central banks go separate ways

Macro 10 minutes to read

Kay Van-Petersen

Global Macro Strategist

Summary:  After New Zealand cut rates and Australia didn't, where does that leave us? Does this policy divergence signal a race to the bottom between a proactive Reserve Bank of New Zealand and a potentially reactive Reserve Bank of Australia?


Saxo Head of APAC macro strategy Kay Van-Petersen gives us his thoughts on this in the attached presentation, as he teases out the implications of the two central banks' policy choices. He also looks ahead to the other key events that may help shape market developments in the region, particularly the directions of the AUD and the NZD.
NZDUSD daily chart. Source: Saxo Bank
Click here for today's Reserve Bank of New Zealand policy statement.

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