Governments have been able to overrule the Reserve Bank for 80 years. Why stop now? 
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Sure, the RBA froze interest rates on Tuesday, but there's plenty of pain to come 
The Federal Reserve held off hiking interest rates 
The RBA has kept interest rates on hold. Here's why it'll be cautious from here on 
Why central banks are too powerful and have created our inflation crisis 
Will the RBA raise rates again? Unless prices surge over summer, it's looking less likely 
What central banks are doing to safeguard financial stability and why they must proceed with caution 
Interest rates: Monetary policy is always political as central banks opt to back the financial sector 
The Federal Reserve and the art of navigating a soft landing ... when economic data sends mixed signals 
Why the Bank of England is now more upbeat than the IMF 
RBA's latest forecasts are grim. Here are 5 reasons why 
The RBNZ is expected to remain on hold through this year at least, and that seems to quite agreeable. As a result, that should cap 2yr NZ yields at 2.30%, while a slight loss of economic momentum, both in NZ and in developed economies could see the lower bound at 1.95% tested occasionally as markets flirt with a rate cut.
In view of that, contemplating the 2019 outlook, it has been adopted a cautiously defensive position in part expressed through short NZDUSD. While we uphold our NZD shorts given expectations of a dovish-to-unchanged monetary policy and also given its sensitivity to global growth. The main event this week for New Zealand was the soft 4Q CPI report.
We don’t think this justifies a rate cut from the RBNZ in 2019, even though we do expect downgrades to inflation (mostly on oil) and growth and thus a dovish spin on the outlook (4Q CPI not quite the spark for the RBNZ). Please be noted that the AED we recommended back in November, we still retain short NZDUSD exposure in the outright spot. Courtesy: JPM
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards -153 levels (which is bearish), while hourly USD spot index was at 91 (bullish) while articulating (at 09:16 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
