A heck of a lot stronger! Seems every time 'parity' is mention the rate falls off a cliff
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People look at currency as if it were a stock and assume a strong currency is bullish and a weak currency is bearish. This may be for capital movement, but economically, it is opposite. Strong currency reduces exports and weaker currency results in more exports.
M.Armstrong.
These numbers are notoriously erratic, so although the market will pare their rate cut expectations, lets wait until we see next months & see if there are revisions or a reversal etc. You just need to look at the numbers of Kiwis returning. Net migration has dropped from around 35k p.a. to 2k p.a.
Its probably an exaggerated sample, however its a reasonable indication of the issues around employment in Aussie.
NZD actually strengthened further overnight. I would suggest we will see a surge through parity & that will be the time to jump in & buy AUD.
Not just two parties... we all piggy back off China, eur, us etc etc
And we are back up to .9949, getting o so close to that magic 1:1 mark. Just wondering if this is the highest it has ever been. I like it for the novelty factor but my Aussie holdings sure are taking a pounding. Swings and roundabouts anyway, but it should not be long till we see parity if this keeps on going.
Lets wait and see how the AUS CPI data comes out at 1.30pm today, QoQ expecting 0.1%