The New Zealand dollar was rallying today on positive macroeconomic reports from China, but retreated later and is trading below the opening level as of now. The currency was most likely dragged down by fears of quantitative easing tampering from the US Federal Reserve.
China’s inflation accelerated by 0.1 percentage point to 3.2 percent in October, according to the National Bureau of Statistics of China. Industrial production 10.3 percent last month, more than was forecast. The kiwi was unable to hold gains despite the good news. One of the problems for the NZ dollar is the fact that stronger currency may lead to a delay of interest rate hike from the Reserve Bank of New Zealand, therefore a currency’s rally is viewed as a negative event itself.
NZD/USD was down from 0.8253 to 0.8237 as of 16:01 GMT today after rallying to 0.8287. NZD/JPY retreated from 81.89 to 81.71.
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