The New Zealand dollar rallied today, reaching the strongest level in more than two years against the Japanese yen, on positive macroeconomic data and anticipation of stimulus from the US central bank.
Today’s trading session was marked by cautious optimism among Forex traders. The data from Australia, the biggest trading partner of New Zealand, was good. The positive news from Europe eased concerns about the region’s financial crisis.
Market participants also wait for the Federal Reserve’s policy decision, which will be announced tomorrow. Analysts expect that the Fed will boost its asset purchases. Such expectations buoy demand for currencies with higher yield.
NZD/USD rose from 0.8345 to 0.8390 as of 23:44 GMT today, reaching the highest close since March 1. NZD/JPY soared from 68.72 to 69.28 — the strongest since May 2010.
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