The rates continue within the uptrend, which was formed just a few months ago. In the second quarter, all currency pairs with the Japanese yen showed decent dynamics, since the Japanese currency was not difficult to beat only because of Japan's extremely soft monetary policy. In just three months, quotes rose by 8.8%, which allowed traders to make a decent profit. Even higher than now, quotes were only 9 years ago, so the situation may change in the third quarter. It will be more difficult for the New Zealand dollar to receive new stimulus to strengthen.
This week, the NZD came under pressure as the RBNZ left its key rate unchanged. Further growth prospects are doubtful, because the rate is already above 5%. Macroeconomic reports, which could stimulate demand for risky assets, on the contrary, disappointed. The trade surplus narrowed and imports and exports fell more than expected. As a result, this week the upward movement has stopped.
Volatility could pick up next week. Investors are waiting for China's GDP report and industrial output. In Japan, the trade balance is published, and in New Zealand - a quarterly inflation report, as well as a price index for dairy products. Most technical analysis tools indicate the effectiveness of Buys. Despite quotes near the highs, we can still count on a recovery after the price correction at the beginning of the month. Therefore, the deals to BUY remain effective in the short term.
