The New Zealand dollar will remain in focus after trading on Wall Street ends this evening, as Statistics New Zealand releases the latest growth estimate. The nation’s GDP is expected to have expanded by 0.8% in the fourth quarter of 2017 compared to 0.6% in Q3. If the data beats expectations then the kiwi, which has been outperforming her peers, could further extend its gains.
The forex markets were relatively calm today. All eyes were on Wall Street as investors tried to gauge the appetite for risk as the indices bounced around key levels after their significant falls the day before.
The New Zealand dollar has been among the strongest G10 currencies ever since the middle of November.
This week’s clear winner in the FX markets has been the New Zealand dollar. It jumped after NZ Superannuation Fund Chief Adrian Orr was named as next governor of the Reserve Bank of New Zealand.

We see price breaking down on New Zealand dollar/U.S.

Investors remain in reflection mode as the quiet week continues; NZD edges higher as RBNZ acknowledges the inflationary impact of weaker currency; Chinese inflation beats expectations but remains below target; Brexit talks resume but is anyone optimistic at this point?
Angela Merkel has secured her fourth term as German chancellor, but politics in Europe’s largest economy is becoming more complicated.
Once the FOMC meeting and press conference are both out of the way, the near-term direction for the dollar should become clearer. For those who prefer to focus on something else, crude oil or a non-dollar FX pair would be a good place to start.
The New Zealand dollar’s slump continues.

The New Zealand dollar/U.S.