NZD is on track to test the year’s high near 0.7300 - BBH

Research Team at BBH, suggests that Kiwi is leading the pack today on some RBNZ comments as the Deputy Governor Spencer noted that further rate cuts could pose a risk to financial stability. 

Key Quotes

“However, he said that the inflation outlook will ultimately determine monetary policy.  Q2 CPI is due out July 18, while the RBNZ next meets August 11.  Bloomberg consensus is for a 25 bp cut to 2.0% then.  NZD is on track to test the year’s high near .7300, and recent currency strength has tightened monetary conditions.”