New Zealand dollar is showing a high level breaking growth today against the U.S. dollar after the confidence in the carry trade and other
NZD/USD reached its highest value since December 12 as the investors are sure that the Fed will cut the rate by at least 0.50% during the next FOMC meeting, increasing the gap between interest rates of the U.S. and New Zealand to 4.50% boosting the demand for the kiwi.
NZD/USD gained more than 1.2% today going from 0.7796 to 0.7894 and almost surpassing the last Thursday’s gain. NZD/JPY — a long time carry trade favorite Forex currency pair, gained a humbler amount of about 0.3% rising from 84.66 to 84.98 today.
The New Zealand dollar has already gained more than 8% against the U.S. dollar since September 2007, when the Federal Reserve started to cut rates to hold down the financial crisis risks. The futures for the U.S. interest rates indicate a 100% probability that the rate will be cut by 0.50% on 30/31 January.
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