New Zealand dollar keeps holding against US dollar
Yesterday’s data on US came out quite well. That caused negative influence on the US stock market, as well as it supported US dollar against main currencies besides New Zealand dollar. It’s been around its historical peak for quite a while already. Yesterday’s data from China wasn’t bad as well. It supported New Zealand dollar, but Australian dollar continued its fall despite the fact that RBA made a decision to keep interest rate at 2.5% without changes, due to another negative comment about RBA’s desire to leave monetary policy without changes for a considerable period of time. It’s possible that New Zealand dollar doesn’t drop because of the expectation to raise interest rate already in 2014.
The situation on the market in general is marked by the expectation to reduce stimulus from the Fed, especially if fresh data supports such market expectations.
Today we should pay attention to the indicator of economic expectations in USA. Positive data will support US dollar locally.