Welcome to the October 29 2009 issue of the BNZ Weekly Overview.
Helped by more dovish than expected comments from the RBNZ this morning, a fall in the Aussie dollar, and a bout of global jitters, the NZD has fallen three cents from a week ago to near US 72.5 cents. The chances are the decline is temporary and will slowly reverse as risk tolerance again recovers globally.
Wholesale interest rates also backed off 0.2% or so following the RB’s rate comments implying they still won’t cut before the middle of next year.
The WO is quite short this week due to the Labour Day holiday on Monday and work being undertaken in Tokyo.