The Kiwi is ending the week on a high note, receiving solid support from improving risk market appetite. Gains on the week have been impressive (+1.7%, w/w) as the topside remains in favor with traders. Also aiding the currency’s flight has been the bullish comments from RBNZ earlier this week. Currently and along with the AUD, the NZD is very much in vogue ($0.8665).
Earlier in the week good solid data led the Kiwi charge higher. New Zealand reported a stellar trade surplus number for February (+$818m, m/m and +$649m for the year ended in February). It was the widest surplus in three years.
Governor Wheeler and his fellow policy makers at the RBNZ continue to communicate their tightening bias. This month the central bank lifted the Official Cash Rate by +25bps to +2.75% and is widely expected to keep raising rates over the remainder of the year. The futures market has priced the cash rate to be at +3.75% by year-end.
Despite being a currency on steroids there is a danger for a market correction. With many forex participants expecting the USD to eventually grind higher – because of a hawkish FED – many will focus on next weeks US jobs data for direction. A much stronger than anticipated NFP headline should give the dollar that much need support to outperform the G20 currencies, a headline close to expectations the market should see better levels to want to own the NZD.
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- Japan Stock Market Disappoints in 2014
- Japan Unemployment Rase Dropped to 3.6 Percent in February
- Japan Consumer Inflation Steady Weather To Blame
- Indian Elections Reignite IPO Prospects
- China Reassures Markets It Is Ready To Act if Needed
- After Sanctions Russia Looks East
- Japan Consumer Prices Rise Before Tax Hike
- PBOC May Opt For Smaller Stimulus Instead Of “Big Bang” – Analysts
- Chinese Traders Still Seeking To Sell Despite Latest Rally
- Asia Stocks Heading Towards Largest Weekly Gains Despite Nikkei 225 Decline
- Indonesia stocks biggest winners in 2014 as economy recovers
- Perpetual Peso Weakness Raising Philippine’s Smuggling Concern
- Chinese Slowdown and Credit Crunch Could Hurt Yuan’s Rise For Convertibility
- Chinese Banks Forced to “Show Them The Money”
- China Could Be Winner of West and Russia’s Turmoil
- Chinese Gold Imports Rise on Higher Quotas
- China’s Currency Floatation A Test of Market Liberalization
- India Aims To Bring Down Inflation By Shaking Down Market Collusion
- Japanese Survey Shows 76.5 Percent Worried After Post Sales Tax Economy
- Japanese Manufacturing Rises in March But Will Probably Dip Post- Sales Tax
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