The AUD/NZD cross is one of the most trend-driven pairs in the currency markets and the climb from April's record low of 1.0020 is the start of a new big trend. The NZD suffered a fresh bout of losses in mid-June after the Reserve Bank of New Zealand (RBNZ) surprised with a 25-basis point rate cut to 3.25% - its first interest rate reduction in four years. The currency remains pressured by the clear message by the RBNZ: "Further easing may be appropriate ... the exchange rate has declined from its recent peak in April, but remains overvalued." Since the RBNZ's statement, traders rushed to sell NZD despite the 21 % decline in the kiwi since last summer.
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