The Kiwi has made a sequence of lower highs and lows from the start of the week due to US Dollar weakness, and the price may stage a greater recovery over the coming days as it trades above the 200-Day SMA for the first time since last July.
In the next week, the revise to New Zealand’s quarterly GDP report may trigger a bullish response in the NZDUSD pair as the economy is expected to grow 16.4% per annum in the second quarter, which would reveal consistend growth since record keeping began in 1987, and a positive development may encourage the Reserve Bank of New Zealand to lift the official cash rate off of the record low as “the Committee agreed they are confident of meeting their inflation and employment remit with less need for the existing level of monetary stimulus.”
As a result, the New Zealand Dollar may stage a bigger recovery against its US counterpart as RBNZ Assistant Governor Christian Hawkes by reveals that “a 50 basis point move was definitely on the table” at their meeting in August, but a further appreciation in the exchange rate may fuel the recent flip in retail sentiment like the behavior seen earlier this year.
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