XE.com: Australian and New Zealand Dollars Make Small Recovery
- For now the fact that it has not gotten materially worse has helped risk sentiment and the AUD and NZD are both still enjoying their bounce off the lows
- New York currently has 52,318 confirmed cases with 728 deaths, and Trump has just decreed there will be no quarantine
- Markets will move from straight “Risk on/Risk off” flows and will start looking at how countries comparatively are stacking up
- The Reserve Bank of New Zealand has said it will begin Open Market Operations, or the buying of Corporate bonds
- This is a loosening of policy at the margins, and shows that Central banks do have a few more strings to their bow than just interest rates
- The more bonds they buy, the more banks can lend, and hence it helps the stimulate the economy and keep corporates liquid