The New Zealand dollar was heading to end the Friday’s trading session mixed. The same goes for the whole week as the currency gained on some rivals but fell versus others. The next week should be very important for the kiwi and can help establish a more clear trend.
Factors that were affecting markets as a whole were somewhat conflicting, which can explain why the New Zealand currency could not demonstrate a clear trend. On one hand, the dovishness of the Federal Reserve could be considered positive for riskier commodity currencies. On the other hand, the geopolitical tensions between the United States and Iran made investors eschew risk. And on yet other hand, hopes for a positive outcome of negotiations between the USA and China at the upcoming G20 meeting brought some optimism on markets.
The event that will be important specifically to the New Zealand dollar next week is the monetary policy decision of the Reserve Bank of New Zealand. The Westpac Banking Corporation predicted that the central bank will not cut interest rates this month, but will maintain easing bias and is likely to cut rates later this year.
NZD/USD was flat at 0.6585 as of 20:24 GMT today. EUR/NZD jumped from 1.7139 to 1.7254. NZD/JPY inched up from 70.61 to 70.68.
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