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NZD/USD jumps after RBNZ hikes rates, higher rate outlook


Eamonn Sheridan

Wednesday 25/05/2022 | 02:09 GMT-0

05/25/2022 | 02:09 GMT-0

The publication on the decision of the Reserve Bank of New Zealand is here:

Reserve Bank of New Zealand cash rate up 50 basis points, as expected

The Bank is looking for even higher rates to come, this from this post linked above:

  • In September 2022, the RBNZ expects the official exchange rate to be 2.68% (previously 1.89%).
  • By June 2023, the RBNZ expects the official exchange rate to be 3.88% (previously 2.84%).
  • In September 2023, the RBNZ expects the official exchange rate to be 3.95% (previously 3.1%).

That 3.95% should be the peak, according to the RBNZ. The peak was previously observed at 3.35% by the Bank.

NZD

NZD

The New Zealand Dollar (NZD) is the official currency of New Zealand and the tenth most traded currency in the world. Also called Kiwi, the currency is also used in several Pacific islands including Tokelau, Cook Islands, Pitcairn Islands and Niue. The history of NZD is long and dates back to 1934 with the establishment of the Reserve Bank of New Zealand. . Although far from being the most traded currency in the global forex market, the NZD still plays a key role. The NZD is considered a carry currency as it is a relatively high yielding currency. Traders typically buy NZD and fund it with a low-yielding currency such as Japanese Yen (JPY) or Swiss Franc (CHF). What factors affect the NZD? Compared to the US dollar or British pound, the NZD can be much more volatile and dependent on external economic stress or turbulence. Investors with a risk appetite often buy the currency, while fears and market crises put negative pressure on the NZD. There are also several factors that can specifically boost the NZD in the forex market. This includes dairy prices as New Zealand is the largest whole milk powder exporter in the world. A rise in milk prices can lead to spikes in the NZD. By extension, tourism figures are also important for NZD. This is due to the fact that New Zealand depends on tourism as a significant proportion of its economy. Tourism growth would indicate a higher NZD, and vice versa.

The New Zealand Dollar (NZD) is the official currency of New Zealand and the tenth most traded currency in the world. Also called Kiwi, the currency is also used in several Pacific islands including Tokelau, Cook Islands, Pitcairn Islands and Niue. The history of NZD is long and dates back to 1934 with the establishment of the Reserve Bank of New Zealand. . Although far from being the most traded currency in the global forex market, the NZD still plays a key role. The NZD is considered a carry currency as it is a relatively high yielding currency. Traders typically buy NZD and fund it with a low-yielding currency such as Japanese Yen (JPY) or Swiss Franc (CHF). What factors affect the NZD? Compared to the US dollar or British pound, the NZD can be much more volatile and dependent on external economic stress or turbulence. Investors with a risk appetite often buy the currency, while fears and market crises put negative pressure on the NZD. There are also several factors that can specifically boost the NZD in the forex market. This includes dairy prices as New Zealand is the largest whole milk powder exporter in the world. A rise in milk prices can lead to spikes in the NZD. By extension, tourism figures are also important for NZD. This is due to the fact that New Zealand depends on tourism as a significant proportion of its economy. Tourism growth would indicate a higher NZD, and vice versa.
Read this term/USD soared:

NZD/USD jumps after RBNZ hikes rates, higher rate outlook

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