Coming on the back of comments from the RBNZ’s Wheeler that intervention can have some short-term impact, Deutsche Bank have just listed the 4 criteria that need to be assessed before intervention is sanctioned:

  • Is the exchange rate exceptional on an historical basis:
  • Is the exchange rate justified:
  • Would intervention be in line with the RBNZ policy target agreement:
  • Do market conditions exist to successfully shift the NZD.