Tale of Two Central Banks Casts Aussie-Kiwi Fight Into Spotlight
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The trade pitting the Australian dollar against its New Zealand peer is gaining unexpected prominence.
Both currencies plunged more than 2 percent last week against the dollar as traders speculated that the Reserve Bank of New Zealand would take a dovish turn, just like its Sydney counterpart. Instead, RBNZ Governor Adrian Orr indicated on Wednesday that the central bank would keep rates unchanged through 2020, disappointing those betting on a near-term reduction.