The New Zealand Dollar is under pressure on Tuesday as trading intensifies after Monday’s U.S. holiday. The price action indicates that investors are already pricing in future rate cuts by the Reserve Bank of New Zealand (RBNZ), perhaps as early as its next meeting on September 24. Traders are also likely pricing in a dovish statement from the Reserve Bank of Australia (RBA) later in today’s session.
At 03:34 GMT, the NZD/USD is trading .6275, down 0.0033 or -0.52%.
Also from Bloomberg, “Hedge funds are ramping up their short bets against the New Zealand Dollar. Net short speculative positions against the kiwi rose to their highest since November, according to the latest Commodity Futures Trading Commission (CFTC) data.”