The New Zealand dollar fell today even after China’s inflation grew more than expected, adding to the positive market sentiment. The currency dropped on speculations that the recent rally was overdone and as Asian stocks paused their advance.
The National Bureau of Statistics of China reported that the Consumer Price Index grew 2.5 percent in December from the same time in the previous year, beating the analysts’ estimate of 2.3 percent growth. Usually, the kiwi profits from such news, but now traders speculated that the currency had risen too fast too far. The MSCI Asia Pacific Index of shares was flat today after yesterday’s gain of 0.3 percent.
NZD/USD fell from 0.8454 to 0.8368 as of 17:00 GMT today. NZD/JPY declined from 75.05 to 74.65 after touching 75.37 — the highest rate since September 2008.
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