Watching NZDCAD after that RBNZ tone yesterday
Anyone else thinking about how the RBNZ's slightly less dovish stance yesterday might play out? I know it wasn't a hawkish pivot by any means, but the commentary around inflation sticking around longer than anticipated definitely caught my eye. It felt like they're trying to keep options open, which is a subtle but notable shift from some of the prior, more consistently cautious comms.
I'm looking at $NZDCAD, specifically. It's up around 0.81659 today after yesterday's session, which makes sense given the relative hawkishness. But with the BOC still in a holding pattern and Canadian data coming in a bit mixed lately, I'm wondering if this move has legs or if it's more of a knee-jerk reaction. Is the market really pricing in a sustained divergence here, or is this just a temporary re-evaluation before we get more clarity from both central banks? My watchlist is definitely focused on CAD crosses to see if this RBNZ sentiment continues to provide some lift for the kiwi, or if CAD finds its footing later this week.
Yeah, I caught that too. It wasn't a full reversal, but that mention of inflation sticking around definitely hinted at them not wanting to be completely painted into a corner. I'm wondering if this is a genuine shift in their outlook or just a way to manage expectations without committing to anything too soon.