The New Zealand dollar together with its Australian counterpart remained the weakest among most-traded currencies on the Forex market during today’s trading. The reason for such a poor performance was the outlook for monetary easing from the central banks of New Zealand and Australia.
The New Zealand dollar rallied strongly since the last year, though it was moving sideways since the summer months of this year. Last week was very good for the currency despite the sharp decline of New Zealand’s economy as the kiwi rivaled the Japanese yen for the title of the strongest currency on the Forex market. But what this week hold for the New Zealand dollar?
The New Zealand dollar was among the weakest currencies on the Forex market today amid the risk-negative sentiment among investors. Domestic macroeconomic data was also extremely bad, though not as bad as pessimistic forecasts.
The New Zealand dollar rose today, managing to log gains against all other most-traded currencies (though by now, the kiwi has erased its rally versus the Great Britain pound). The likely reason for the currency’s great performance was the news about the easing of coronavirus-related restrictions in the country. The positive general market sentiment also likely played its part in the rally.
The New Zealand dollar was among the strongest currencies on the Forex market today, together with its Australian counterpart. The kiwi managed to rally despite the report that showed a drop in New Zealand’s manufacturing index.
Both domestic macroeconomic data and the general negative market sentiment were detrimental to the New Zealand dollar. But that did not prevent the currency from holding its ground today, rising at least a bit against all other most-traded peers, except for the Australian dollar.
The New Zealand dollar was the strongest among the most-traded currencies on the Forex market today despite the outlook for additional monetary easing from New Zealand’s central bank. Domestic macroeconomic data was favorable but seems to provide no noticeable boost to the currency.
According to data released today, New Zealand’s trade balance surplus shrank last month. But that did not prevent the New Zealand dollar from rising. In fact, it was the strongest among the most-traded currencies.
The New Zealand dollar traded higher against the vast majority of most-traded currencies today, including other commodity currencies, which themselves were firm thanks to the positive market sentiment. Today’s macroeconomic data released in New Zealand was not very good but that did not prevent the kiwi from rising.
The New Zealand dollar was the strongest currency on the Forex market today but the rally was nowhere near enough to mitigate the sharp decline that the kiwi has started a month ago. The major event today is the release of the monetary policy meeting minutes by the Federal Open Market Committee, but most market participants do not expect them to reveal anything particularly new and interesting.
