Forex Flash: The Kiwi continues to bright - BNZ

FXstreet.com (Barcelona) - In view of Mike Jones, currency analyst at Bank of New Zealand, "the ever-brighter glow of the kiwi’s relative growth and interest rate appeal has been largely responsible for the currency’s recent gains."

"Not only are investors worried about a slowing pace of growth in the US and Europe (see Majors), but Wednesday’s morning’s RBNZ statement reinforced to the market the relatively upbeat NZ outlook" he adds.

Mike expands: "The Bank’s comment that growth “has picked up”, alongside it’s ”projection for inflation to gradually rise” has further dimmed the chances of RBNZ rate cuts. This can be seen most clearly in the further gains in NZ-AU 3-year swap differentials, which are now back to almost flat. NZD/AUD is fast closing in on our 0.8300 ‘take profit’ recommendation..."