NZ Dollar Reverses Earlier Losses amid Risk Aversion

The New Zealand dollar gained today after falling earlier due to mild risk aversion on the Forex market. Traders were nervous due to the threat of a hard Brexit as well as the impeachment of US President Donald Trump. There is no obvious reason why the New Zealand currency reversed its losses. Macroeconomic data released over the trading week did not paint a clear picture of the New Zealand economy as there were both bad and good reports.
Statistics New Zealand reported that the seasonally adjusted current account deficit narrowed slightly to NZ$10.3 billion in the year ended September 2019 from NZ$10.6 billion in the same period a year ago. The current account deficit widened by NZ$339 million to NZ$2.7 billion in the September quarter of 2019 from the previous three months on a seasonally adjusted basis. Without adjustment for seasonal variations, the current account deficit widened sharply from NZ$1.04 billion to NZ$6.35 billion, close to the consensus forecast of NZ$6.32 billion.
The Global Dairy Trade Price Index fell by 5.1% after falling by 0.5% in the previous reporting period. The ANZ Business Confidence improved to -13.2 in December from -26.4 in November. The Westpac McDermott Miller Consumer Confidence Index climbed to 109.9 in the December quarter from 103.1 in the September quarter.
Now, traders wait for a GDP report due for release at 21:45 GMT today.
NZD/USD rose from 0.6570 to 0.6578 as of 16:45 GMT today, bouncing from the daily low of 0.6554. EUR/NZD dropped from 1.6955 to 1.6899. NZD/JPY edged up from 71.91 to 72.06, rebounding from the session low of 71.71.

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