New Zealand Dollar Rallies Ignoring Domestic Fundamentals

Economic data released from New Zealand today was not particularly good, but it had little bearing on the nation’s currency that joined a rally of other high-beta currencies.
The Westpac/McDermott Miller Consumer Confidence logged a decline from 109.6 in the March quarter to 106.0 in the June quarter. The reading above 100.0 indicates optimism, but that optimism is clearly waning. The report confirmed that, commenting on the result:

That’s the seventh decline in the past nine quarters, and leaves confidence at below average levels.

Yet the data had little bearing on the performance of the New Zealand dollar, being overshadowed (as many other events) by the upcoming referendum in Great Britain. For now, it looks like the United Kingdom is going to remain in the European Union. This is helping riskier currencies, and the kiwi was not an exception.
NZD/USD rallied from 0.7062 to 0.7103 as of 15:57 GMT today, and its daily maximum was the highest since the multi-year high reached on June 9. EUR/NZD declined from 1.5979 to 1.5912. NZD/JPY ticked up from 74.00 to 74.12.

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