Forex Flash: Little the RBNZ can do to smooth the Kiwi's rise - BNZ

Following the verbal threat of an RBNZ intervention, according to Mike Jones, currency analyst at Bank of New Zealand, "there is very little the bank can do to slow the NZD’s ascent, other than trying to 'smooth the peaks'. Wheeler also shot down most of the quick fixes currently being propounded by political and media types.

Mr. Jones added: "There was nothing in the speech to shake us from our view the NZD is poised to keep rising this year. We’ve being toeing the line that, while overt intervention is unlikely at present, the RBNZ will continue to use “passive” intervention to accumulate foreign reserves and lean against the firmer NZD. “Active” RBNZ intervention will only be considered by the RBNZ if NZD gains become disorderly and driven more by speculative froth than ‘fundamentals’. There is no evidence of this occurring."