RBNZ lowers key rate and wants to see kiwi weaker

The RBNZ lowered the key rate by 25bp to 2.75% as expected. However, the NZD started to slide as the RBNZ signalled further rate cuts. The economic outlook is now its major concern. Understandably as China, New Zealand's most important trading partner, has started to stumble. As a result the RBNZ considers further depreciation to be "appropriate" in NZD, which in addition to low interest rates is the decisive factor in supporting the economy. 

The market got the message: the RBNZ wants the NZD to ease even further. As a result it can easily push NZD-USD towards 0.60 for the foreseeable future now, says Commerzbank.