The New Zealand dollar gained against its US peer and stayed flat versus the Japanese yen today, following yesterday’s losses. It looked like optimism about the coming policy meeting of the Federal Reserve outweighed the negative news from Europe and China.
China’s falling imports hurt prospects for New Zealand assets as the China is the second-biggest trading partner of New Zealand. Additionally, the decline of imports is negative for Australia — the major trading partner of the South Pacific nation. The worries about the situation in Europe were not doing the New Zealand currency any good either.
What tuned out positive for the kiwi (as the currency is usually nicknamed) and other higher-yielding assets was the speculations about the Fed monetary decision this week. Traders hope for some sort of stimulus and such hope buoy assets associated with risk.
NZD/USD was up from 0.8082 to 0.8093 as of 5:10 GMT today, while NZD/JPY stayed flat near 63.29.
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