NZD / USD continues to rise, crosses above 0.7050 level and June 2018 highs

• Another day of gains for the NZD / USD has seen the pair rise above the 0.7050 level and its June 2018 highs.
• Kiwi traders await the terms of trade data released early in the Asian session on Wednesday.

The NZD / USD has continued to move higher, with the pair advancing above 0.7050 and June 2018 highs at 0.7060 on Tuesday. As it is, the NZD / USD it trades with gains of more than 50 pips of around 0.7%.

NZD is still one of the best artists of the G10

Kiwi continues to outperform antipodean rival AUD by a solid margin on the week; the former has risen against the US dollar by about 0.6% already in the week, while the latter is trading with losses of around 0.2%.

A solid result from the Fonterra GlobalDairyTrade auction just after 2.30pm GMT, in which newspaper prices rose 4.3% during the week, is likely to support the NZD; As a reminder, New Zealand’s main export is dairy products.

More domestic data from New Zealand was released in the early part of Wednesday’s session in Asia; At 9:45 p.m. GMT, third-quarter terms of trade data are released and exports are expected to rise 4% quarter-on-quarter, export prices drop 3.5% and import prices 1.0%.

However, the NZD continues to perform better as a result of global macro reasoning; The trade-dependent nation looks set to benefit from expected improvements in world trade and travel conditions in 2021 as the world gets vaccinated and international relations improve with the US-led Biden administration. The country has contained the pandemic well, meaning its economy has not been as affected as other developed markets, while the country is not experiencing a significant deterioration in ties with China, as Australia has in recent weeks. .

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