Central banks a problem for higher beta currencies, like NZD?

Analysts at Nomura explained that among G4 central bank chiefs, Governor Kuroda's stance has not materially changed.

Key Quotes:

"JPY weakness against European G10 FX is in line with our view of monetary policy divergence, and the EUR/JPY appreciation trend may continue in the medium term."

"Heightened focus on financial stability, a shift in global central bank policy and rising longer-end yields should be also a headwind for higher-beta commodity currencies like NZD."

"We recommend long EUR/NZD, targeting a move up to 1.6190.

We also anticipate a re-test of the early June highs in EUR/AUD, while the pace of appreciation is likely to be slower than the swift move up observed in late April/May."