NZD Fails to Rally vs. USD, Keeps Gains vs. JPY

The New Zealand dollar attempted to rally against its US counterpart but failed and trades below the opening level right now. At the same time, the currency managed to maintain gains versus the Japanese yen.

The difference in the kiwi’s performance against different peers can be explained by disparity in monetary policy outlooks. Market participants count on monetary tightening from the Federal Reserve in a relatively near future. Meanwhile, the Bank of Japan has easing bias, and additional monetary stimulus from Japan’s central bank is not out of question. As a result, the New Zealand dollar performs far better against the yen than against the greenback.

NZD/USD went down from 0.7882 to 0.7861 as of 15:17 GMT today after rallying to 0.7910 earlier. NZD/JPY advanced from 92.88 to 93.11.

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