Why is NZD so strong??

[Meselll]

Has anybody got an idea on the NZD is moving strong???

[pepoml]

And I thought I had been looking at AUDUSD. That's funny. They are going to cancel their currency to the Aussie.

[guicammi]

NZD continues its up-trend. The service is provided by the conclusion on kea interest rate. I think it will be climbing to 8.25%

[hugipksammienpk]

Outstanding buying level in preparation.

[Agwnoa7]

Excellent buying degree in preparation to the RBNZ choice.
Hope it's not like your last call on USD/CAD...

[hugipksammienpk]

Hope it is not like your last call on USD/CAD...
My call about the USD/CAD was a good short amount. I think you are getting me confused.

[pepoml]

Interesting. They increase the rate it drops 30 pips.

[hugipksammienpk]

The 25 hike was factored in possibly. Lets see what the Japanese housewives have to say.

[gammigo23]

Here is a few of what the central bank had to say:

”The high New Zealand dollar isn't sustainable medium term and investors must understand this. The higher OCR gives incentives to New Zealanders to conserve.
”New Zealanders have been showing early signs of moderating their borrowing.
Provided they keep this up, and the pressure on funds continues to facilitate, we think the four consecutive OCR increases we have delivered will be sufficient to contain inflation”

http://www.rbnz.govt.nz/news/2007/3074597.html

[hugipksammienpk]

There is talk that 8200 is your peak. It is going to be interesting, that's for certain.

[pepoml]

There is talk that 8200 is the peak. It'll be interesting, that's for sure. I have seen that talk too. I will be very curious to see this thing goes.

[alicayhemnang15]

8,25? Looks like it is already factored in.

Well, does seem good for carry trade but because Monday market has been in unfamiliar direction. I will stay until the mess is apparent.

[Noeeguijammo95]

I do not really understand NZD news now, and the kiwi is losing and losing pips.

[semggg]

Rates were anticipated. Comments were dovish.

But the elevator in the official cash rate (OCR) from 8 per cent is likely to be the previous one, Reserve Bank governor Alan Bollard said.

It is contingent of future data, imho.

http://www.theage.com.au/news/business/new-zealand-bumps-up-interest-rates/2007/07/26/1185339123596.html

[Jomgealokso40]

New Zealand dollar was overvalued coming into this'rate hike.' The market factored this rate increase in for the week. RBNZ is convinced that the rates has peak in this economical cycle. Therefore another move is going to be down (although that might be a 6-9 months or so away.

RBNZ may also only be trying to'talk down' the dollar like Mr Cullen was trying to do. The lot of CPI etc will be high affecting reports particularly if it shows signs of weakening. I am confident that we've reached pretty close. . .but Ive been wrong before and I hate trying to'select on' the top!!

We'll wait and watch... I went brief at .81 so its been great up to now!

[guicammi]

The choice to boost cash rate was created on the grounds of inflation risks, which largely reflect non-stable situation at labor market, high capacity use and prices for oil and meals.

High rate of New Zealand dollar, connected with American dollar weakness and high demand for borrowing from the nation, is of major concern for Reserve Bank of New Zealand. Bollard thinks that such degree of currency may hurt exports.

[aikiham]

Abosolutly LOVING this pair today. Down Baby Down

[akashazgz]

Abosolutly LOVING this pair now. Down Baby Down Up Baby Up

[aikiham]

Abosolutly LOVING this pair now. Down Baby Down
That post was more than a month old. I remember getting around 600 pips from the trade. It turned out to be a nice one.

[jokhy908]

Fixed into some value relative to another ccy, the way CNY was relative to the USD for a decade, up to 2 decades ago. It is more likely that they will go for a banded (i.e. dirty) float, I'd think, until they actually go back to a peg. Thank you for describing, love it