- The New Zealand dollar can be seen for the fourth consecutive day and approaches the maximum of the year to date at 0.6090.
- Concerns about the independence of the Federal Reserve are harming the US dollar.
- In New Zealand, recent data support the idea that RBNZ will remain firm in July.
The New Zealand dollar extends its profits for the fourth consecutive day on Thursday, and is almost 2% higher in the week so far, with a high probability of testing the maximum of the year to date to date in the area of ​​0.6080-90.
A greater appetite for the risk after the high fire in the Middle East has relieved geopolitical tensions, promoting the risk sensitive kiwi this week. On Thursday, the widespread weakness of the US dollar after Trump’s last attacks to the president of the Fed, Powell, has provided an additional impulse to the torque.
Trump called Powell “stupid and low intellectual coefficient” at a press conference on Wednesday, after the Fed president refused to point out a short -term rate cut. Trump also considered the possibility of anticipating the announcement of his successor, which has raised questions about the independence of the Central Bank and is eroding the credibility of the US dollar as the world reserve currency.
The weak US data has increased the hopes for feat cuts from the Fed in September
In this context, and with the recent US data revealing a weakened economic panorama, investors are increasingly valuing a Fed cut in the coming months, which is adding pressure to the US dollar.
The CME Fed Watch tool shows a 24% probability that the Federal Reserve after monetary policy at its July meeting, compared to 14% of last week. In September, however, futures markets are almost completely valuing a rate cut. The tool shows more than 90% probabilities of some monetary relief after summer, compared to levels just above 60% only one week ago.
The New Zealand calendar is light this week. The May commercial surplus was reduced less than expected, while the data last week showed a stronger gross domestic product than expected in the first quarter, which reinforces the decision of the RBNZ to postpone more cuts of interest rates.
New Zealander dollar this week
The lower table shows the gear dollar change percentage (NZD) compared to the main currencies this week. New Zealand dollar was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -2.05% | -2.23% | -1.62% | -0.49% | -1.58% | -1.73% | -1.90% | |
| EUR | 2.05% | -0.22% | 0.51% | 1.58% | 0.43% | 0.32% | 0.11% | |
| GBP | 2.23% | 0.22% | 0.75% | 1.80% | 0.65% | 0.54% | 0.33% | |
| JPY | 1.62% | -0.51% | -0.75% | 1.10% | -0.00% | -0.07% | -0.39% | |
| CAD | 0.49% | -1.58% | -1.80% | -1.10% | -1.04% | -1.24% | -1.46% | |
| Aud | 1.58% | -0.43% | -0.65% | 0.00% | 1.04% | -0.13% | -0.33% | |
| NZD | 1.73% | -0.32% | -0.54% | 0.07% | 1.24% | 0.13% | -0.22% | |
| CHF | 1.90% | -0.11% | -0.33% | 0.39% | 1.46% | 0.33% | 0.22% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the New Zealand dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the NZD (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
