The New Zealand dollar slumped against its top rivals on Friday, enduring its biggest losses since April of last year, according to Reuters.
The Reserve Bank of New Zealand said it plans to move forward with selling the kiwi while taking on challenges and risks. The nation is slated to release economic data about consumer price index, which raises questions about whether the bank will increase borrowing costs.
"The kiwi/Aussie cross could be under a little bit of risk if we get a benign CPI on Tuesday," senior adviser Martin Rudings OMF in Wellington told TVNZ on Friday. "It's probably vulnerable for a bit of a correction."
But, despite the poor performance on Friday, the New Zealand dollar was barreling toward marking weekly gains of 2 percent against the Australian dollar. The kiwi earlier this week touched its top value in eight years against the Aussie as the New Zealand economy continues gaining strength, according to TVNZ. A survey earlier this week indicated business confidence has pushed to its top rate in 20 years.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.