NZD/USD flows: 50bps Surprise

The RBNZ has cut more than expected by 50bps and see the Kiwi getting slaughtered. A key factor behind Kiwi's slump apart from a double cut, is the forward guidance RBNZ has provided that they may cut further. While they have considered both 25 and 50bps cut, the spare capacity in NZ seems to have driven them towards a 50bps cut.

NZD/USD is trading 0.98% lower at 0.5742.