Rollercoaster Ride for the Kiwi
New Zealand: NZD/USD Past 5 days
International: EUR/USD Past 5 days
Today's commentary
Domestic retail sales data was not expected to be much chop yesterday and came out even worse than expected. This data was much anticipated in the currency market as fresh evidence of a slowing local economy, and the New Zealand dollar fell to new four month lows on its release.
The kiwi’s demise was such that it managed to drag the Australian dollar down with it and the Aussie hit a two week low against the US dollar. The Aussie loses were short-lived however, and it regained ground on increased risk appetite, where there are no thoughts of a rate cut across the Tasman. The Australian dollar made further ground in the off-shore session and the kiwi opens down against the Australian dollar this morning.
Despite yesterdays sharp drop the kiwi opens up against the other majors this morning, thanks in part to the Australian dollar correction. Weaker than expected US manufacturing data helped the kiwi’s overnight recovery. Producer price data will provide direction going into the weekend.
Upcoming Announcements
- 16 May 2008: NZ Producer price inputs and outputs
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