The New Zealand dollar retreated today as virtually all macroeconomic reports from New Zealand were negative this week, making the currency less attractive for Forex traders.
The New Zealand Institute of Economic Research Quarterly Survey of Business Opinion showed that economic activity slowed in the last three months of 2011. The Real Estate Institute of New Zealand House Price Index declined 0.1 percent in December from a month ago after it rose 1.1 percent in November. The consumer price index was down 0.3 percent in the fourth quarter, while it was expected to grow at the same 0.4 percent rate as in the previous quarter.
Market mood was positive yesterday on speculation that the International Monetary Fund will raise funds to protect the global economy from the impact of the European crisis. The New Zealand currency gained on yesterday’s session, but the poor domestic data hurt the kiwi.
NZD/USD dropped from 0.8037 to 0.8022 and NZD/JPY slipped from 61.67 to 61.52 as of 3:29 GMT today. EUR/NZD continued yesterday’s rally and edged up from 1.5984 to 1.6040 today.
If you have any questions, comments or opinions regarding the New Zealand Dollar,
feel free to post them using the commentary form below.