The New Zealand climbed today as positive news from the United States and Europe created a favorable trading environment for currencies with higher yield, while Alan Bollard, the Reserve Bank of New Zealand Governor, further bolstered the currency as he suggested that the New Zealand is performing better than was thought.
The United States showed signs of robust economic recovery, while the European Central Bank kicked can down the road, possibly allowing Greece more time to sort out its problems. The indebted Hellenic Republic isn’t out of the wood yet, but for now traders are less tense about the euro-region. The resulting positive mood lifted riskier assets and the New Zealand dollar followed other commodity currencies to the upside.
Reserve Bank Governor added even more strength to the kiwi (the nickname of the NZ dollar) as he suggesting that the New Zealand economy is in better shape than most analysts have estimated. Bollard said today:
Our view is that in New Zealand, some conservative statistical interpretations and particular characteristics of our economy have resulted in the understatement of New Zealandâs economic performance. In international league tables New Zealand is in some ways better off than is often thought.
NZD/USD was up from 0.8327 to 0.8370 as of 2:22 GMT today, while EUR/NZD fell from 1.5754 to 1.5680, almost erasing yesterday’s gains. NZD/JPY climbed from 65.69 to 66.15 and touched 66.29 earlier, the record level since August 5.
If you have any questions, comments or opinions regarding the New Zealand Dollar,
feel free to post them using the commentary form below.