The AUD/NZD has staged a massive rally since bottoming out at just above parity back in April. It has gained some 1350+ pips in the process. Most of the gains have been due to a weaker NZD rather than a stronger AUD. The NZD has fallen off a cliff after the Reserve Bank of New Zealand made a U-turn in its policy stance. Worried about the increases in house prices in Auckland in particular, the RBNZ had kept rates high and maintained a hawkish tone. But after the dramatic falls in key commodity prices, the RBNZ could no longer justify maintaining a contractionary policy stance. So, it trimmed interest rates and warned ... (full story)