The New Zealand dollar logged gains during the trading week. It is a surprising fact considering that both domestic and global fundamentals worked against the currency.
This week’s trading has started on a positive note for the kiwi as comments of the New Zealand Prime Minister supported the currency. Things quickly worsened, though, as commodities were experiencing losses, dragging commodity currencies down. As for domestic events, they were also bad as New Zealand’s central bank slashed interest rates.
Yet all the negative news did not push the New Zealand currency down, and it was trading mostly sideways after the rally at the start of the week. In fact, the interest rate cut led to jump of the currency, though it was short-lived. And the drop of crude oil prices allowed the kiwi to outperform the Canadian dollar that strongly depends on prices for crude.
NZD/USD was up from 0.6516 to 0.6574 over the week, touching the weekly high of 0.6695. NZD/JPY edged up from 80.78 to 81.38, rallying to the high of 82.85 during the week. NZD/CAD climbed from 0.8447 to 0.8695 before closing at 0.8571.
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