Archived IMT (2009.07.29)

Will today's RBNZ decision (21:00 GMT) manage to drag the Kiwi lower? The policy statement is widely expected to hold rates unchanged at 2.5%, while communicating gradual stabilization in economic activity. Theres no question that the central bank is growing increasingly concerned with the strengthening NZD, but its vocal inability to weaken the currency has been just as obvious. The decision will take place 1 hour after the close of NY trading, thus in the event that US equities deteriorate in late trading, then accumulated risk aversion could intensify against NZD. 0.6510, 0.6470. Here's LAST MONTH'S POLICY STATEMENT (watch the negative bias on inflation and growth) http://www.rbnz.govt.nz/news/2009/3658527.html