Forex Flash: AUD/NZD hit - Societe Generale

FXstreet.com (Barcelona) - Alvin Tan, FX Strategist at Societe Generale notes that AUD/NZD has been hit as the RBNZ kept on hold at 2.5% as expected.

However, he adds that the the accompanying statement leaned slightly to the hawkish side as it noted that the NZ economy had picked up and it re-stated its concerns about domestic house price inflation. He sees that the RBNZ also repeated its view that the kiwi dollar was overvalued, but the market's not going to be bothered by such minor details when there's positive carry to be had.He writes, “So long as the RBNZ does not directly intervene in the market. On the other hand, Australian CPI data came out lower than expected. AUD/NZD consequently traded to its lowest level in almost two years.”