Forex Flash: NZD/USD, no RBNZ intervention in the horizon – TDS

With Kiwi last trading at near sesion highs 0.8385, off ysterday's fresh 8-day lows at 0.8315, Singapore based analyst at TD Securities Alvin Pontoh believes RBNZ wont intervene in the near future because not enough necessary conditions are met, nor “the RBNZ cannot fight 'the strength of capital flows' that has pushed the Kiwi upwards,” Alvin says.

“Even if the RBNZ intervenes, it is constrained to merely 'smooth[ing] the peaks'. If this can be achieved with negligible cost through ‘open mouth operations’, then why intervene in the first place with precious few resources at hand?,” he concludes.