We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • US Equity Close: $SPX +3.30% $DJI +3.07% $NDX +3.62% $RUT +1.10% $VIX -8.93
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.91% France 40: 0.53% US 500: -0.12% Wall Street: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uRmj2JayN8
  • S&P 500 Continues Recovery, NFP Looms Large for US Data https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/03/30/ES-SPY-SPX-SP500-Continues-Recovery-NFP-Looms-Large-JS.html https://t.co/SZLy1nqPaz
  • US House Speaker Nancy Pelosi says she does not expect bipartisan virus bill until after After break $SPX $DXY
  • RT @lisaabramowicz1: The economic downturn is happening so fast that the New York Fed launched a new weekly economic index that assesses re…
  • #Gold: Price is holding up well with a small consolidation phase that could lead gold higher towards the 1680/1700 region. Get your $XAUUSD market update from @PaulRobinsonFX here: https://t.co/R5C6K0IVWh https://t.co/Gw0DX1VAgB
  • #Crypto update: $BTC +4.7% $BCH +6.2% $ETH +4.1% $LTC +2.4% $XRP +2.4%
  • RT @SPGlobalRatings: As the longest economic expansion in U.S. history abruptly ends, we forecast GDP will drop 1.3% this year--on par with…
  • $USDCAD staged a meteoric rise earlier this month before stalling out around 1.4669. Get your USD/CAD technical analysis from @PeterHanksFX here:https://t.co/22H6lN4e99 https://t.co/cjR1NfQJz6
  • RT @dlacalle_IA: Moody's estimates that around 22% of non-investment grade debt in Europe will not be able to service their debt, vs 1.5% a…
New Zealand Dollar Rally To Gather Pace on Faster Growth

New Zealand Dollar Rally To Gather Pace on Faster Growth

2011-07-09 02:54:00
David Song, Strategist
Share:
New_Zealand_Dollar_Rally_To_Gather_Pace_on_Faster_Growth_body_Picture_5.png, New Zealand Dollar Rally To Gather Pace on Faster Growth

New Zealand Dollar Rally To Gather Pace on Faster Growth

Fundamental Forecast for New Zealand Dollar: Bullish

The New Zealand dollar advanced to a fresh record high of 0.8370 and the high-yielding currency may continue to push higher in the week ahead as the 1Q GDP report is expected to show a faster recovery in the isle-nation. Economic activity is expected to increase another 0.3% in the first three-months of 2011 following the 0.2% expansion during the previous period, and the stronger rate of growth is likely to spark a bullish reaction in the NZD/USD as market participants expect to see higher borrowing costs in the region.

As Reserve Bank of New Zealand Governor Alan Bollard sees scope to gradually normalize monetary policy, market participants see borrowing costs increasingly by nearly 75bp over the next 12-months according to Credit Suisse overnight index swaps, and interest rate expectations may gather pace in the second-half of the year as the central bank adopts an improved outlook for the region. As the NZD/USD trades within an upward trending channel, the technical outlook for the pair remains fairly bullish, and the kiwi may continue to outperform against its major counterparts should the RBNZ continue to talk up speculation for higher rates. However, as the marked appreciation in the local currency curbs the risk for inflation and instills a weakened outlook for global trade, Governor Bollard may highlight the dampening effect of the higher exchange rate in an effort to temper to balance the risks for the region.

Nevertheless, risk sentiment is likely to heavily influence price action for the NZD/USD ahead of the GDP report as the economic docket remains fairly light for the beginning of the week, and the kiwi-dollar could face a small correction in the days ahead as long as the relative strength index continues to hold below overbought territory. At the same time, we could see fresh record-high prices in the exchange rate should the growth rate top forecasts, and the bullish sentiment underlying the high-yielding currency may gather pace over the near-term as the economic developments show a strengthening recovery in New Zealand. – DS

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.