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New Zealand Dollar Rebounds on Central Bank Statements

July 14, 2009 at 13:04 by Jan Baros

New Zealand dollarThe New Zealand dollar posted its first climb in a week after a central bank statement which affirmed that the Southern nation will recover from the global slump at a faster pace than its main trading partners boosted attractiveness for the kiwi.

After Reserve Bank of New Zealand Governor Alan Bollard declarations today that the New Zealand economy will climb faster than its trading partners, the national currency reached a one-week high and posted the sharpest rally since a U.S. employment report two weeks ago brought pessimism back to equities and currency markets. The renewed confidence in the kiwi and New Zealand’s economy helped speculations that the interest rates in the country will be increased during the next 12 months, since domestic evidences already indicate that New Zealand is rebounding from the worst recession in 30 years. In the neighboring Australia, the national currency also climbed as a report showed business sentiment turned positive for the previous month, adding attractiveness for assets in the region.

Analysts are confident but at the same time cautious regarding the New Zealand dollar outlook, they affirm that even if domestically the nation is providing evidences for optimism and confidence, it is hard to determine what direction markets will take before the U.S. reporting season.

NZD/JPY climbed to 58.97 as of 11:59 GMT from a previous rate of 57.37. NZD/USD traded at 0.6334 from 0.6217.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

4 Responses to “New Zealand Dollar Rebounds on Central Bank Statements”

  1. Nikhil Gupta

    What is the view for the New Zealand dollar in the long ter and the short term?

  2. Andrei Moraru

    Both short- and long-term outlooks for NZD are bearish in my opinion.

  3. Nikhil Gupta

    But in the recent past the NZD have shown a Bullish attitude despite heavy expectations of its Downward movement, so how can you support your statement.?

  4. Andrei Moraru

    There is a very strong resistance above 0.6500 level.

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