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AUD/NZD Highest Since Dec 2000 On Dovish RBNZ

Forex News AUD/NZD shoots to its highest levels since December 2000 after RBNZ indicated multiple interest rate cuts are in the works. Tony Morriss, FX strategist at ANZ, says RBNZ's dovish tone was surprising, saying they've clearly indicated more cuts are likely; given tone, it's surprising RBNZ didn't cut by more this time around. Only thing likely to stall further RBNZ cuts is if NZD overshoots to downside, thus easing monetary conditions, Morriss says. Also notable that RBNZ has entered into an easing phase while other advanced economies are signaling problems with inflation. AUD/NZD, now 1.2909, up from 1.2825 before RBNZ comments.



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