The other day we saw the Reserve Bank of New Zealand cut interest rates by a surprise -.5% to 1%. The NZ dollar fell -2.5% instantly and dragged down the Australian dollar to a 10-year low of around US67 cents.
It is blatantly clear we are in a race to ZIRP (zero interest rate policy) globally. A trade war between the USA and China has now moved to a global currency devaluation war, led by central banks. Just remember, central banks have limitless firepower and unconventional tools to deploy.