NZD/USD Makes a Minor Recovery as the US Dollar Maintains Its Upward Momentum

The NZD/USD pair made a minor recovery during today’s trading session even as the US dollar continues to gain ground against other major currencies. The US dollar is demonstrating significant upward momentum as the market’s appetite for the dollar shows no signs of abating.

The New Zealand dollar gained slightly against the US dollar boosted by the release of data relating to the dairy industry. Data released earlier today indicated that the New Zealand GDT dairy price index declined -0.5% as compared to the previous figure of 3.5%.

The greenback’s rise was mainly boosted by positive comments from Janet Yellen on Tuesday regarding the US labor market. The terrorist attacks in Germany, Turkey and Switzerland also pushed the greenback higher as investors become risk averse and move their money to back the global reserve currency.

Analysts predict that the US dollar shall continue rising over the short-term backed by the Fed’s hawkishness and the recent election of Donald Trump. The greenback’s future remains bullish as the markets anticipate Donald Trump’s aggressive fiscal policies aimed at growing the economy and boosting inflation.

The NZD/USD currency pair hit a daily high of 0.6937 although the kiwi lost some ground to trade at 0.6925 as at 17:57 GMT. The NZD/CAD pair also gained significant ground today hitting a high of 0.9266, although its currently trading at 0.9238. The NZD/JPY reached new highs of 81.786, but has since lost ground to trade at 81.437.

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