AUD flying high, NZD going down – BBH

NZD Research Team at BBH, suggests that after the yen today, the New Zealand dollar is the weakest of the majors. 

Key Quotes

“It is off about three-quarters of a percent on heightened rate cut speculation following the central bank's announcement of an unscheduled economic assessment next week.  The central bank meets again in the second week of August.  The derivatives market now shows around a 60% chance of a rate cut then, up from 40% previously.  

The Australian dollar is second only to sterling today.  It was helped by a sharp jump in full-time employment (38.4k), which is the strongest since last November.  This, coupled with the tick up in consumer inflation expectations, keeps investors from anticipating a near-term RBA cut.”