The Australian and New Zealand dollars flatlined on Thursday after central bank policy meetings at home and abroad produced few surprises, leaving investors with nothing new to trade on for the moment. The kiwi dollar briefly edged higher in early action after the Reserve Bank of New Zealand (RBNZ) held rates at a record low of 1.75 percent as expected and reiterated that trade tensions were a risk to its growth outlook.
It only reached $0.6680 before offers kicked in and left it barely changed on the day at $0.6652. The diverging paths have taken New Zealand two-year yields 105 basis below those in the US, a major reason the kiwi has shed more than 6 percent this year.
The Aussie, likewise, has lost 7 percent this year as the Reserve Bank of Australia (RBA) has kept rates at 1.5 percent and shown every sign of staying there for a long time. For now, the Aussie was holding at $0.7260 having bounced somewhat from a 2-1/2 year trough of $0.7085 hit early in September. Immediate support was put at $0.7236, with stiff resistance seen around $0.7300/15.