New Zealand Dollar/U.S. Dollar and New Zealand Yield Curves
What if we know New Zealand dollar/U.S. dollar rises in U.S. markets with the rise of U.S. bond yields? The question of what direction will New Zealand dollar/U.S. dollar take when New Zealand bond yields rise during New Zealand trading is another issue.
Because New Zealand dollar/U.S. dollar are opposing pairs in this form, New Zealand dollar/U.S. dollar will follow its own bond price up or down rather than New Zealand bond yields. Stated differently, when New Zealand bond prices are down, New Zealand dollar/U.S. dollar will fall, and rise when bond prices rise.
Both markets have opposite effects due to the opposite alignment of the New Zealand dollar/U.S. dollar configuration. If the ...
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