By Francesco Pesole, FX Strategist
It's remote but the Reserve Bank of New Zealand might be looking at a Swiss-style mix of negative rates and FX intervention in future if economic conditions worsen. However, market intervention would likely imply significant purchases of the Aussie dollar, and a possible adverse reaction by Australia's central bank may not be worth the risk
The RBNZ has started to hint at intervention
The RBNZ is dealing with the adverse impact of a relatively strong currency, and has so far failed to effectively curb the New Zealand dollar's gains through