RBNZ remains on sidelines, but prefers weak NZD

The Reserve Bank of New Zealand did not cut its key rate yesterday night. However, its statement clearly suggests that the recent NZD appreciation is undesirable and might result in a rate cut after all if it is sustainable.

With the RBNZ remaining dovish, the upward potential of NZD-USD is probably limited, said Commerzbank in a research note on Thursday.