The New Zealand dollar managed to rebound today, following yesterday’s drop, even as the New Zealand trade balance deficit was bigger than predicted. The agreement to provide a bailout for Greece was the likely reason for the rally of the risky New Zealand’s currency.
The New Zealand trade balance posted the deficit of NZ$718 million in October. The reading was below the September’s NZ$775 million, but far above the predicted NZ$490 million. Yet the accord regarding an aid for Greece has put the Forex market in the risk-on mode, allowing the kiwi to gain despite the unfavorable fundamentals.
NZD/USD rose from 0.8214 to 0.8231 and NZD/JPY went up from 67.43 to 67.63 as of 12:56 GMT today.
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