New Zealand Dollar Surges on Inflation Expectations, Loses Gains Later

The New Zealand dollar surged intraday after the nation’s central bank released its inflation expectations, but the currency retreated later, trimming its gains against the euro and the Japanese yen, while losing them completely versus the US dollar.

The Reserve Bank of New Zealand released its inflation expectations for the next two years. The report showed an increase of 1.9% compared to 1.7% in the previous reporting period. Now, traders wait for policy meeting of the central bank, which will occur during the North American trading session.

NZD/USD dropped to 0.7292 as of 9:43 GMT today after opening at 0.7319 and rising to 0.7374 — the highest level since since November. NZD/JPY opened at 81.76, rallied to the high of 82.49 intraday, but pulled back to 81.93 by now.

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