The New Zealand dollar rose today, avoiding the slump that other commodity currencies suffered due to the drop of crude oil prices. Domestic macroeconomic data likely helped the kiwi.
The Reserve Bank of New Zealand upgraded its inflation expectations for the annual Consumer Price Index growth in two years from now, increasing them from 1.92% to 2.17%. The expected growth remains in the central bank’s target range, meaning that there is no pressure to raise interest rates just now. Still, it looks like the data was enough to help the New Zealand dollar to avoid losses that other currencies linked to raw materials had experienced.
NZD/USD rallied from 0.6870 to 0.6894 as of 8:27 GMT today. EUR/NZD dropped from 1.5977 to 1.5910.
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