Salient threads in the digital debate driving this movement include:
At the time of writing, the USD/NZD was trading at 0.71663 with a forward implied rate of 0.7100.
- New polls show Labour's meteoric rise since Jacinda Ardern became party leader on August 1 has continued, a result consistent with Predata's digital momentum analysis at the end of last month.
- Consequently, a flummoxed National Party, at risk of falling out of government for the first time in nine years, is appealing to its base with tough-on-crime policies such as boot camps for youth delinquents and depriving rights to gang members.
- The latest RBNZ figures on mortgage borrowing will raise questions about when the central bank will loosen the loan-to-value ratio. Though outgoing Governor Graeme Wheeler indicated this week that any such move is not imminent, both Prime Minister Bill English and Ardern have expressed concern, suggesting either a National or Labour government could push the issue forward after this month's election.
New Zealand 10-yr yields are currently 2.860%.
The RBNZ next meets on September 28.