New Zealand Dollar Strengthens Against the US Dollar
The New Zealand dollar has become stronger against its United States dollar during the trade on Monday, fueled by the unknown timing in which the US Feds will increase rates, hence placing a dark cloud over the United States dollar in the market.
Late Monday Asian trading activities for the NZD/USD pair rose as high as 0.7664, which has been its biggest value for two months now. It ended with a 0.50 percent increase at 0.7603. This was between the lowest value of the 4th of March which was 0.7540 and the high value of the 21 st of January which was 0.7712.
The decline in the United States dollar occurred because of the decline in the pace of interest rate increase, hence traders are reluctant to bet as much for the dollar, since they are not sure the Feds will hike rates in June as expected, due to the report received last Wednesday that week from the US Federal Reserve.
However, investors still think that the US dollar drop is just for a while and it is a much needed relaxation for the greenback since it has been upbeat for about half a year now.
The New Zealand Dollar rose up against the Australian dollar, as the AUD/NZD pair skinned 0.49 percent to 1.0232.
United States home sales reports released later on Monday was good, the published data indicated a 1.2 percent increase in February home sales from 4.82 million in January to 4.88 million in the month of February.