The New Zealand dollar rallied today as fears about trade wars eased as the United States and China started negotiating about a trade agreement. New Zealand macroeconomic data released overnight turned out to be better than expected, adding to the upward momentum of the currency.
The New Zealand trade balance turned from a deficit of NZ$655 million in January to a surplus of NZ$217 million in February. That was a surprise to economists as they were expecting a deficit of NZ$100 million.
The Reserve Bank of New Zealand added maximum employment to its mandate, though said that it will still prioritize price stability. Such decision means that interest rate will stay low for longer time, but so far the currency did not react to the news.
NZD/USD rallied from 0.7233 to 0.7288 as of 11:07 GMT today. NZD/JPY jumped from 75.66 to 76.60.
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