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Forex pairs in this Article » NZD/USD
FXstreet.com (Barcelona) - After its initial surge higher at the start of the year,( the NZD has consolidated around the 0.8400 level. Last week's NZ CPI data showed inflation, at 0.9% YoY, remains below the bottom of the RBNZ's 1-3% target range. However, it failed to have any lasting impact on expectations for RBNZ activity, or the NZD.

According to Kymberly Martin at BNZ, the 'risk sensitive' NZDUSD remains underpinned by very healthy global risk appetite. Our risk appetite index (scale-100%) has inched higher to 85%, its highest level since mid-2007. The apparent insatiable appetite for risk in the face of numerous unresolved issues, not least the US debt ceiling and fiscal spending negotiations, sends a contrarian signal. Now is not the best time to be taking on additional risk. In this context the NZDUSD remains vulnerable to any sobering in mood, with protracted US negotiations being the most obvious near-term catalyst."
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