The New Zealand Dollar fell near to a 1-year trough against the US Dollar as concerns over the New Zealand economy trumped the recent bounce in the price of oil. It began when the Reserve Bank of New Zealand (RBNZ) surprised markets with a still-neutral policy stance, suggesting that investors had read the country’s economic outlook incorrectly and, further, that the depreciation of the Kiwi was within acceptable limits.
As reported at 11:09 am (BST) in London, the NZD/USD was trading at $0.6847, down 0.05%; earlier the pair had hit a trough of $0.68182 while the session peak was set at $0.68635. Against the Aussie Dollar, the AUD/NZD was trading higher at NZ$1.0764, a gain of 0.22%.
Moody’s Rating Shifts Loonie Sentiment
The Canadian Dollar, also known as the Loonie, suffered a similar fate as a commodity-linked currency, falling hard against the US Dollar. In the case of the Loonie, Moody’s downgrading of Canadian “big six” banks’ ratings tested the sentiment and weighed on the currency. The USD/CAD was trading at C$1.36904, a gain of 0.17%; the pair’s range in today’s trading session is from a trough of C$1.36527 to a peak of C$1.37447.