The New Zealand dollar jumped to a three-week peak today, as traders trimmed the chance of a cut in official interest rates, after the news the country’s economy sped past all expectations in the second quarter.
New Zealand’s GDP grew 1 percent in the three months to the end of June, double the pace of the previous quarter. That easily beat market expectations of 0.7 percent, and the Reserve Bank of New Zealand forecast of 0.5 percent.
The mood in the Asia market session is riding high, taking the Aussie dollar higher as metals and commodities prices get bolstered, by renewed market sentiment. But basic factors for the Aussie remain subdued, leaving the major pair primed for a bearish continuation.
The US dollar drifted near a seven-week low against a basket of major currencies. The safe-haven demand for the US currency receded on relief that tariffs the Unites States and China imposed on each other’s goods, were set at lower levels than some had feared.