In otherwise lackluster trading the New Zealand Dollar experienced only a slight loss of last week’s positive momentum after the country received an upgrade of its sovereign debt rating which had pushed the Kiwi to a 3-year high. Fitch Ratings said that the New Zealand government’s efforts at fiscal consolidation warranted the improved outlook from stable to positive and gave the country a AA- rating.
As reported at 10:44 a.m. (JST) in Tokyo, the NZD/USD was trading at $0.8790, slightly off the multi-year peak of $0.8806, with FX traders now setting their focus on the $0.8840 price which had been set in August 2011. Though the Kiwi had moved broadly higher, analysts expect that it could appreciate further later this month if the New Zealand central bank lives up to expectations with a 25 basis points rate hike.
Fed and ECB Informational Releases Loom
The U.S. Dollar was under pressure and thus far has given back nearly half of last Thursday’s gains; markets are anxious to learn whether June’s Federal Reserve meeting minutes will provide any indication of how soon the Fed might begin raising interest rates. Meanwhile Euro traders are waiting to see what surprises the ECB president, Mario Draghi, might have in store when the ECB issues its monthly report on Thursday.