[B]It seems that the Reserve Bank of New Zealand was at it again, intervening in the markets (or at least that?s what?s being speculated on) last Friday. [/B]
Nonetheless, carry traders are remaining steadfast in their quest for higher yields as the underlying currency was able to touch a 22-year high with many expecting further attempts by the central bank to fail. Already intervening for the rumored third attempt, it seems that Bollard and fellow central bankers are running out of steam as many continue to focus on at least one more rate hike by the end of the year. However, market event risk is emerging in the form of the nation?s trade balance which may turn the tide in the bank?s favor. Consensus estimates are looking for a return to surplus, with a deficit likely to push the Kiwi lower in the short term tomorrow night.