The New Zealand Dollar has dropped dramatically against all of its major counterparts, hitting a two-month low against its US namesake and after Prime Minister John Key spoke out in favor of an interest rate cut in the aftermath of the worst earthquake in 80 years that rocked the city of Christchurch last week. Key said the government would welcome a decrease in benchmark borrowing costs. He added that the market has priced in a cut [and] that would probably be my expectation. The Reserve Bank of New Zealand is scheduled to hold their regular policy meeting on March 10. We remain short NZDUSD.

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