The New Zealand dollar attempted to rally today with the help of the positive interest rate outlook but failed. The general market sentiment was not supportive for currencies that perceived to be relatively risky.
The Reserve Bank of New Zealand conducts its policy meeting on July 24, and most market participants expect the central bank to raise the main interest rate by at least 25 basis points. Such outlook is positive for the New Zealand currency, allowing it to rally intraday. Yet the rally failed, and the currency retreated because of the same reason as its Australian counterpart — the risk-negative sentiment that rules the Forex market currently.
NZD/USD fell from 0.8696 to 0.8687 as of 18:47 GMT today after rallying to 0.8719 earlier. NZD/JPY retreated from 88.14 to 88.06 following the rise to 88.25.
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