New Zealand Dollar Extends Uptrend Against Majors
Wednesday in Asia, the New Zealand dollar extended its uptrend against other major currencies on the back of a rise in regional stocks.
The kiwi surged up to near a 2-year high against the euro, 3-week high against the greenback, 15-day high against the yen and an 8-day high against the Aussie.
New Zealand’s benchmark NZX 50 index is currently trading at 3,226.19, up 12.98 points or 0.4% over its previous close.
In economic news, New Zealand’s merchandise terms of trade index climbed 5.7% quarter-on-quarter in the December quarter, rebounding from the 1.6% decrease in the previous quarter, Statistics New Zealand said today. The latest quarterly rise followed six consecutive quarterly falls and is the largest increase recorded since the March quarter of 1976.
The merchandise export price index fell 0.3% in the December quarter, following the 5.4% fall in the September quarter.
The NZ dollar, which closed yesterday’s trading at 0.7032 against the US currency rose to a 3-week high of 0.7072 in early Asian deals on Wednesday. The next upside target level for the kiwi is seen at 0.715. The kiwi-greenback pair is currently worth 0.7064.
During early Asian deals on Wednesday, the New Zealand dollar jumped to a 15-day high of 63.67 against the Japanese yen. This may be compared to Tuesday’s close of 63.28. On the upside, 64.5 is seen as the next target level for the kiwi. At present, the kiwi-yen pair is worth 63.61.
The New Zealand dollar soared to near a 2-year high of 1.9237 against the euro in early Asian deals on Wednesday. If the kiwi advances further, it may likely target the 1.90 level. The euro-kiwi pair that closed yesterday’s trading at 1.9353 is presently worth 1.9260.
In early Asian deals on Wednesday, the New Zealand dollar climbed to an 8-day high of 1.2960 against the Aussie. The next upside target level for the kiwi is seen at 1.277. The aussie-kiwi pair is presently worth 1.2970, compared to 1.3026 hit late New York Tuesday.
The German trade balance for January, final CPI report for February, French and the Italian industrial production for January and the Italian final fourth quarter GDP are expected to influence trading in the European session today.
From the U.S., the wholesale inventories report for January and the monthly budget statement for February have been slated for release in the North American session.
