EURNZD Euro vs New Zealand Dollar

The New Zealand strengthened against the other major currencies and held steady thereafter in the Asian session on Wednesday, as traders were surprised by comments by Reserve Bank New Zealand Governor Graeme Wheeler. Meanwhile, the gains in commodity prices also boosted sentiment.

Speaking to a business group at the Tauranga Chamber of Commerce, in New Zealand, RBNZ Wheeler said that the economy isn't weak enough to warrant big reductions in interest rates, however further monetary policy easing is likely.

"Some further monetary policy easing is likely to be required to maintain New Zealand's economic growth around its potential, and return CPI inflation to its medium-term target level," Governor Graeme Wheeler said.

"Further exchange rate depreciation is necessary, given the weakness in export commodity prices and the projected deterioration in the country's net external liabilities over the next two years," Wheeler said.

Last week, the RBNZ cut its official cash rate to 3 percent, to revive inflation from near zero as slumping dairy prices slowed economic growth. However, most economists expect two more reductions by October, to a record low of 2.5 percent, and some see even deeper cuts.

Meanwhile, the Asian stock markets are mostly higher, tracking the positive lead from Wall Street overnight and the European markets as well as higher commodity prices.

Investors are treading cautiously ahead of the Federal Reserve's highly anticipated monetary policy announcement later in the day. The Fed is widely expected to leave rates unchanged, but investors will closely analyze the accompanying statement for hints regarding an interest rate hike in September.

Tuesday, the NZ dollar rose 1.21 percent against the U.S. dollar, 1.46 percent against the yen, 0.54 percent against the Australian dollar and 1.56 percent against the euro.

In the early Asian trading today, the NZ dollar rose to more than a 2-week high of 0.6737 against the U.S. dollar and a 4-week high of 83.27 against the yen, from yesterday's closing quotes of 0.6683 and 82.5, respectively. Thereafter, both the currencies held steady.

Against the Australian dollar and the euro, the kiwi advanced to more than a 1-1/2-month high of 1.0895 and a 6-day high of 1.6412 from yesterday's closing quotes of 1.0944 and 1.6512, respectively. Thereafter, both the currencies held steady. Looking ahead, Japan small business confidence index for July is due to be released at 1:00 am ET. Additionally, Swiss UBS consumption indicator for June and the results of the Gfk German consumer confidence survey for August are set to be announced at 2:00 am ET.

U.K. mortgage approvals and M4 money supply date, both for June, are also slated for release.

In the New York session, U.S. pending home sales for June and crude oil inventories report for the week ended July 24, are set to be published.

At 2:00 pm ET, the Federal Reserve will announce its decision on monetary policy.

Euro vs NZD (FX:EURNZD)
Forex Chart
Von Mär 2024 bis Apr 2024

Euro vs NZD (FX:EURNZD)
Forex Chart
Von Apr 2023 bis Apr 2024