The New Zealand dollar reversed its movement after yesterday’s slump, rising a bit today. Gains were nowhere near the previous losses, though, and it may be nothing more than just a small correction.
The New Zealand dollar behaved very similar to its Australian counterpart, plunging yesterday (sinking more than 5 percent against the Japanese yen) but bouncing a little today. Unlike the Aussie, the kiwi got some support from domestic fundamentals as the Reserve Bank of New Zealand reported that inflation expectations remained stable. The New Zealand currency has been trading sideways since the middle of July, and it is possible that during yesterday’s trading session traders saw a breakout to the downside.
NZD/USD rose from 0.6476 to 0.6513 and NZD/JPY ticked up from 76.68 to 78.05 as of 10:15 GMT today.
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