The New Zealand dollar has risen by 79.5% in the last 9 months and this, apparently, is not the limit. Growth continues against the backdrop of a weakening USD, as well as a favorable economic situation in the region. We can observe this thanks to the Chinese and New Zealand's economies recovering. According to the report released this week, New Zealand's GDP grew by 14% in Q3, after falling by 11% in the previous quarter. Thus, we can see how the economic situation is really improving, of course with the help of China, whose economy is also on the rise. Optimism continues to prevail among investors, despite the fact that the pandemic is far from over. Therefore, there is every reason to expect fthe urther growth of the NZD.
The USD, of course, contributes to the active growth of other currencies because it continues falling in price in December. This week's meeting of the Federal Reserve strengthened investors' expectations for the adoption of stimulus measures for the US economy. It is unlikely that something changes here until the end of January, when Joe Biden officially takes office as President, although his statements made it clear that the weak dollar suits them well. As for the US economic indicators, they also have a negative impact on the value of the dollar. Reports published this week indicate an increase in the number of applications for unemployment benefits, and the business activity index from the Philadelphia Federal Reserve is almost twice less than expected.
Next week will be short. Nevertheless, updated data on the US GDP in the third quarter is expected, as well as data on new home sales in the United States. Of course, this will not be enough to change the situation in favor of the USD. Most technical analysis tools remain committed to the deals to buy and we also consider them to be the most effective, expecting the pair to reach new highs in December and January.
