This is the forex quote for the New Zealand Dollar vs. Japanese Yen exchange rate. NZD (the 'base currency') is quoted in terms of JPY (the 'counter currency'). The Yen is a historically low-yielding currency, making an attractive vehicle to fund carry trades (where traders borrow cheaply in JPY to buy higher-yielding currencies, including NZD). Investors tend to favor carry trades at times of optimism about global economic performance and stability; they shun them at times of market stress. This makes NZD/JPY sensitive to swings in broad-based market sentiment trends. The pair is likewise responsive to economic news - both domestic and that of key trading partners (notably China) - that shapes expectations for Reserve Bank of New Zealand monetary policy.
- #NZD may rise with risk-oriented assets following the FOMC rate decision
- Powell emphasized Fed support for financial markets, applauded Congress’ fiscal efforts
- #NZDJPY may bounce from key inflection range, but can it puncture stubborn resistance?
$NZDJPY heading into a seasonably weak month (August).
- RBNZ has also flagged their unease of NZD strength (big divergence in TWI and RBNZ forecast of TWI) and its negative impact on exporters, raising the likelihood the RBNZ will act in August https://t.co/norU3oG84Y
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