Quote Originally Posted by Dr_Who View Post
In the long term NZD may go below 50 cents.

I think the market has factored into the price of a weak economy and RB cutting rates 1% with the drop from 60 to 52 cents.

I had a chance to short the kiwi at 59 cents and I didnt.
Me too. Nevermind. Anyway it is strange to see Kiwi was very strong overnight and is sitting mid 53 range. Given the fonterra pay out and OCR decision i was expecting much lower. NZ $ seems to have more in common with the DOW than the NZ economy. If it decouples then it will be fun.

Am short Kiwi but long Dow and hope to see this decouple after 9am when Bollard makes his call. I am wondering if he will drop 1.5% as this would make sense. If the end is going to be 3% then get there sooner rather than later in my opinion. The Kiwi still needs to drop to .45 for the long term health of NZ. Imports are still too high and a short export prices will be pressured by the EU and other countires protectionist moves. The Kiwi will have to be lower to compensate for that.