The New Zealand dollar dropped versus its major counterpart the US dollar, after New Zealand’s currency declined due to the government stating that the economy will be financially supporting AMI Insurance Ltd. following the Christchurch earthquakes.
On the other hand, the New Zealand dollar reached its highest level in eight weeks against the US dollar at 0.7805 on Thursday, while investors returned to trade in markets; pushing traders to purchase high yielding currencies.
Moreover, the Australian dollar recorded historic highs around 89.40, against the Japanese yen.
The New Zealand dollar also will gain against the greenback, as the Reserve Bank of New Zealand is expected to raise interest rates by 42 basis points over the next 12 months.
On Friday, the New Zealand economy will not release any fundamental data, but the US economy will present its crude inventories.
The US economy will end the week by issuing its wholesale inventories index for the month of February that is forecasted to show an incline by 1.2%, higher than a previous reading of 1.1% in January.
Originally posted here
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