26 Quotes by Greg Gibbs

Much of this liquidity appears to be coming from China and increasingly Japan where investment trust growth is supplying significant volumes to foreign bonds with little regard to the rising global imbalances that policy makers frequently flag as a risk to the global economy.

Obviously the market was well prepared for a change. Maybe the market is expecting some more calming comments from Fukui.

Based on our sense of positioning, excessively bearish sentiment, and risks that the economy does not slow as rapidly as hoped, we see greater upside potential for New Zealand dollar than further downside in the next month or two.

Recovering equities and still overall strong commodity markets suggests that there is little broad-based concern that central bank policy tightening will curtail global economic growth and there is still adequate global liquidity chasing higher risk assets and capping risk premiums,

The RBNZ has been talking the currency down for over a year and certainly won't discourage further falls. A negative trend in the currency has taken hold and the presumption that the economy will struggle this year, without a much lower currency, will keep it trending lower.

There is some kind of a shift under way, with the large move over the last couple of days testing the bottom of its range for the last year.

This number is quite a shock. This is a short-term negative for the currency and I'm surprised it hasn't fallen further.

The sharp rally in the yen last week may not last. There is chatter about an impending policy tightening by the BOJ, but this is still around six months away at least.

Rate speculation this week has built up a head of steam. This will support the Australian dollar.