Kiwi Crunch on the Radar!

Media Release

Mar 12, 2014

Kiwi Crunch on the Radar!

AUD/NZD

Up/Down punters with leading Australasian financial market-maker WhichWay.com are gearing up to plunge record bet numbers on the Kiwi Dollar against the Aussie either side of tomorrow morning’s critical RBNZ Interest Rate decision.

With almost all of the cash rate market pricing in a 25 point rate hike tomorrow morning from the NZ Central Bank, punters have already started betting up on the Kiwi as it rose against a slumping Aussie dollar in early morning action today!

The AUD’s slow recovery - after slumping to 1.05800 around 7am (AESDT) this morning from around 1.06600 NZD through the middle of yesterday – was snapped minutes ago when the monthly Westpac Consumer Confidence survey fell 0.7% from 100.2 last month to 99.5 in an eight-month low!

The Aussie Dollar immediately fell back from 1.06080 to 1.05940 against the Kiwi.

“Up/Down punters successfully bet down last night on the AUD/NZD pair; but as the Aussie claws back some ground, we are expecting record volumes over the next 24 hours through the Cash Rate announcement and subsequent Monetary Policy Statement from the NZ Reserve,” WhichWay’s Analyst and Media Chief Neil Evans said.

“The Kiwi/Aussie continues to be one of the heaviest bet and traded currency pairs for #Forex and #Up/Down players, and there appears to be a ‘positioning’ pattern from our clients to say the Kiwi Dollar could surge again if the expected quarter per cent rate hike to 2.75% arrives!”

Evans said the latest financial polling had around 90 per cent pricing in a rate increase, with many forecasting multiple increases throughout 2014.

“Cash Rate markets were seemingly set on a March hike once it was clear heading into the February decision the Reserve would sit on its hand for a further month, and NZ home owners are reportedly now fixing their mortgage rates in much bigger numbers,” he added.

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