RBNZ Cuts, But The New Zealand Dollar Rallies Anyway

The U.S. dollar is down sharply as global bond markets rally

Highlights

• The U.S. dollar is down sharply as global bond markets rally

• Chinese equities gain on rumors of another round of government stimulus

• France-Germany spreads are back to Eurozone crisis levels

• Green shoots in Canada may be creating a tactical “sweet spot” for the TSX

Key Takeaways

Dollar Dips as Yen Surges

• The DXY U.S. dollar index is down a full -50 pips, with Japan the big winner — and even a -50 basis point rate cut in New Zealand didn’t stop the local currency from strengthening against the greenback.

Global Bonds Rally on Light Australian Inflation Print

• A light Australian inflation print has helped fuel a global bond rally in parallel with the U.S. dollar move.