NZ Dollar Defies Negative Market Sentiment

The New Zealand dollar managed to reverse yesterday’s losses against its US counterpart today and traded sideways versus the Japanese yen. It was surprising, considering uncertainty about this month’s policy decision of the US Federal Reserve.

The Fed conducts its two-day policy meeting on September 17–18. It is expected that the central bank will reduce monetary stimulus and analysts predict that today’s non-farm payrolls should encourage such decision. Expectations of quantitative easing reduction were weighing on the market sentiment, eroding traders’ willingness to buy risky currencies, but the kiwi was able to erase losses even in the negative trading environment.

NZD/USD rallied from 0.7882 to 0.7906 as of 1:45 GMT today. NZD/JPY traded near the opening level of 78.88.

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