ANZ suggest that "the latest reiteration.......>

KIWI: ANZ suggest that "the latest reiteration from the RBNZ that it is still a

long way away from tightening (and perhaps could even ease further) has shone a

brighter light on the shift in New Zealand's yield structure relative to the

rest of world. The entire NZGB curve is now trading through its US equivalent,

and we are not far away from that being the case against Australia too. Even

though the NZD at around 0.66 is now below the bottom end of our short-term fair

value estimate range, we think this yield structure story increases the odds of

an undershoot and likely outweighs any lingering positivity from elevated

commodity prices. We revise our end-of-year NZD/USD forecasts to 0.62 (from

0.67) and see it at 0.61 over 2019. If growth continues to deteriorate and the

market begins to embrace greater odds of a rate cut, the NZD/USD will be

pressured even more. This takes our end-2018 and end-2019 forecasts for AUD/NZD

(NZD/AUD) to 1.13 (0.89) and 1.15 (0.87) respectively."