The New Zealand dollar gained today, ignoring the surging current account deficit. That means that the currency was driven by outside factors.
New Zealand’s current account posted a deficit of NZ$2.84 billion in the March quarter of this year, an increase by NZ$1.14 billion from the previous three months. It was the biggest deficit since the financial crisis in 2008. Yet the New Zealand dollar ignored negative domestic data, most likely due to the same reason as the Australian currency — positive reports from China.
NZD/USD rallied from 0.7220 to 0.7271 as of 12:38 GMT today, trading at the highest level since February 8. EUR/NZD fell from 1.5520 to 1.5451.
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