NZ 10 Year Yields edge past AU - AUDNZD may fall

While CA, US, JP and AU yields have dropped in the general risk off mood across markets, NZ Yields have gone against the grain and in the "yield- off" between the AU and NZ 10 Year Yields, NZ has just edged past their pacific neighbour, with the 1% target in mind. The AUDUSD is still trading at around $1.07, however indications are that this may dive lower, as the currency trade typically lags the yield rate differential by 1-3 days.