15 Jul 2015
NZD/USD drops sharply toward 2015 lows amid Yellen and a decline in dairy prices
FXStreet (Córdoba) - NZD/USD fell almost a hundred pips recently and is testing 2015 lows that lie at 0.6620; if it breaks lower it would be trading at 5-year lows.
Weak NZD, stronger USD
The kiwi dropped across the board after the Fonterra’s GlobalDairyTrade price index dropped 10.7%. While the US dollar started to rally about two hours ago with Yellen’s speech and US inflation data.
Janet Yellen said that it is likely for rates to raise in 2015 boosting greenback in the market. The kiwi remains weak amid expectations of another rate cut by the Reserve Bank of New Zealand, particularly after today’s decline in dairy prices. Also global uncertainty should weigh on the decision. Today the Bank of Canada lowered the main rate.
Weak NZD, stronger USD
The kiwi dropped across the board after the Fonterra’s GlobalDairyTrade price index dropped 10.7%. While the US dollar started to rally about two hours ago with Yellen’s speech and US inflation data.
Janet Yellen said that it is likely for rates to raise in 2015 boosting greenback in the market. The kiwi remains weak amid expectations of another rate cut by the Reserve Bank of New Zealand, particularly after today’s decline in dairy prices. Also global uncertainty should weigh on the decision. Today the Bank of Canada lowered the main rate.