There is little doubt that the New Zealand dollar’s rally against the greenback can largely be contributed to the plunge of the latter (just look at the kiwi crosses); but we will likely see the currency take up its own trend tomorrow.
The RBNZ rate decision is scheduled for release late Wednesday afternoon in the US session; and the event has clear market potential. While the benchmark rate is heavily expected to be held at 2.50 percent; there is a good chance that Governor Alan Bollard will offer comments that set the scene for the next policy shift and benchmark growth forecasts. The central banker has maintained his dovish penchant in recent statements; but talk of a global recovery will turn the tides.