4 Feb 2014
NZD/USD continues bullish momentum
FXStreet (London) - NZD/USD has rallied strongly through the day, regaining a large percentage of its recent losses.
NZD given support by AUD bullishness
The Kiwi has benefitted for the strong AUD bullish trend through the day on a changed stance from the Reserve Bank of Australia. The RBA held rates overnight in its monthly rate decision, but the accompanying statement dropped any reference to the AUD being over valued.
The Kiwi dollar had been under bearish pressure through last week on emerging market concerns. Concerns over EM exposure to tightening USD conditions as the Fed continued on its trajectory of quantitative easing tapering knocked risk appetite, putting pressure on higher-yielding currencies.
March rate hike expectations
Fourth quarter unemployment numbers due out at 21:45 GMT should help to confirm expectations of a March rate hike from the Reserve Bank of New Zealand. Consensus expectations are for a decline from 6.2 percent to 6.0 percent. RBNZ governor Graeme Wheeler last week said that the Kiwi economy is growing too fast to constrain inflation. He has signaled that he will move to hike rates from the current 2.5 percent level at the March meeting and confirmation of declining unemployment will give Wheeler further breathing space to hike rates and rein in the NZ economy.
NZD/USD is currently trading at USD0.8172, climbing 1.32 percent on the session.
NZD given support by AUD bullishness
The Kiwi has benefitted for the strong AUD bullish trend through the day on a changed stance from the Reserve Bank of Australia. The RBA held rates overnight in its monthly rate decision, but the accompanying statement dropped any reference to the AUD being over valued.
The Kiwi dollar had been under bearish pressure through last week on emerging market concerns. Concerns over EM exposure to tightening USD conditions as the Fed continued on its trajectory of quantitative easing tapering knocked risk appetite, putting pressure on higher-yielding currencies.
March rate hike expectations
Fourth quarter unemployment numbers due out at 21:45 GMT should help to confirm expectations of a March rate hike from the Reserve Bank of New Zealand. Consensus expectations are for a decline from 6.2 percent to 6.0 percent. RBNZ governor Graeme Wheeler last week said that the Kiwi economy is growing too fast to constrain inflation. He has signaled that he will move to hike rates from the current 2.5 percent level at the March meeting and confirmation of declining unemployment will give Wheeler further breathing space to hike rates and rein in the NZ economy.
NZD/USD is currently trading at USD0.8172, climbing 1.32 percent on the session.