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Watching NZDUSD and AUDCAD after today's RBNZ rate hold
The RBNZ holding rates steady was largely anticipated, but their forward guidance still feels a bit more hawkish than some in the market were expecting. I'm keeping a close eye on $NZDUSD, currently around 0.56411, to see if it finds renewed support or if the market decides to fade that hawkish lean. Also curious to see the flow into $AUDCAD, trading near 0.97972, as the carry differential might start to factor in more prominently if the RBNZ maintains its firm stance longer than the BoC.
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The RBNZ's tone certainly had an edge. Curious if that hawkish lean holds up past the initial reaction, especially given global growth concerns. I'm not convinced NZDUSD has enough fundamental tailwind for a sustained move up.