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The New Zealand dollar benefits from the Japanese QE, in addition to the US one, and reaches fresh highs last seen in August 2011.

NZD/USD now trades at around 0.8560. The all time high at around 88.40 is not that far anymore. 85.73 serves as a minor support line.

The central bank and the government both warned on the excessive level of the kiwi, but can probably do little to fight this phenomenon, which is hurting the New Zealand economy.

The BOJ announced a very comprehensive plan to fight deflation. The announcement not only weakened the yen against the dollar, but also caused outflows of money from Japan.

New Zealand has an open economy, a free floating currency, a non-zero interest rate and high quality retirement properties. These can be attractive to Japanese investors.

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