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The NZD downside momentum wanes.

Written by Sam Coxhead on September 7th, 2012.      0 comments

4:05 PM (NZT) The impact on this currency pair:
This week have been a case of a game of two halves for this pair. The NZ dollar started the week under renewed pressure following the continued bad news coming from the Chinese manufacturing sector. The wider market negative sentiment continued through into the middle of week before consolidating. From there we saw better Fonterra auction results coupled with on expectation economic data in Australia. What ensued was un-dramatic covering of sold NZ dollar positions. This saw the pair start to grind higher against the recent trend. This gained momentum on Thursday as leaked details about the ECB debt market plans buoyed sentiment further. The formal ECB announcement further fueled risk appetite. So the pairing is above that .8000 level as we head into the crucial USD employment numbers later on today. If the number is on the better side on expectations, expect to see further covering of sold NZD positions drive the pair higher in the short term. However, global growth remains of significant concern and once this current enthusiasm runs its course, it is likely the fundamental will once again begin to weigh.
The current interbank midrate is:                                                            NZDUSD .8011  
The interbank range so far this week to date has been:                 NZDUSD .7910 - .8034
Topics: NZD USD