December 8, 2010
After partying too hard on risk appetite booze earlier in the day, the Kiwi found itself with a hangover, puking pips all over the place. After testing weekly highs around .7650, NZD/USD bent over and coughed out almost 100 pips to end the day at .7578.
No biggies were released from New Zealand yesterday, but all that changes today, as our drinking buddies over at the RBNZ will be releasing the interest rate decision at 8:00 pm GMT. Rumors are that they will follow the RBA and BOC’s lead in pausing on any rate hikes and will be keeping the cash rate at 3.00%. Watch out though, for any drunken, dovish texts, as it may just send markets into a full-on bar room brawl!
"The only cable I watch is the pound baby."