The New Zealand dollar halted the 4-day rally against its Australian counterpart today as the inflation data suggested no new rate hikes soon.
The kiwi (a nickname for NZD) also fell against the US dollar and the Japanese yen as the traders turned to safety assets following some weak stock trading sessions on the global markets. New Zealand consumer inflation data came out yesterday at 23:45 GMT, showing a 2.3 percent growth in the fourth quarter of 2010, which is below the median forecast of 2.4 percent. The data suggests that the Reserve Bank of New Zealand won’t increase the official cash rate (currently standing at 3 percent) on January 27.
AUD/NZD rose from 1.2889 to 1.3040 as of 11:02 GMT today; it fell almost 3.9 percent during previous 4 days. NZD/USD declined from 0.7654 to 0.7627, while NZD/JPY went down from 62.83 to 62.68.
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