If you wondering which one is the chicken, we´re referring to the New Zealand Dollar as the chicken. Yesterday was mainly a risk aversion day in forex and the commodity Dollars together with the Euro ended the day down against the US Dollar and the Yen. But, the NZD was pretty resilient. We were wondering where did all this love for the NZD come from all of a sudden.
There was no economic data on the calendar coming from New Zealand. There was no international dairy products news to which the NZD is very sensitive and there was no news coming from China, because if there was the AUD would be the prime beneficiary.
Well, we now know that it was a non-official comment/statement from the RBNZ (Royal Bank of New Zealand) which implied that they were not going to cut the interest rates any further, in fact, they could start increasing them to cool off the housing sector. The forex market was expecting an interest rate cut next month but now everything has reversed, that´s why the NZD has surged in the last two days. This is a game changer for the Kiwi.
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