ANZ: Timing Swings Is Nearly Impossible

ANZ note that "the Kiwi is way lower on the swing in risk appetite, with US stocks and bond yields lower too. Picking the timing of swings like this is near impossible, but it was always on the cards, given the accelerating rate of change seen in some key US stock indices. We're not equity analysts, but key drivers like excess liquidity, the rebound thematic and low interest rates are still supporting risk taking, suggesting it is more likely to be a correction than the end of the road. Other than positioning, NZD-specific factors haven't really played a role in the overnight move and nor have RBNZ policy settings, but they are likely to in time."