By Ashley Smith – New Zealand’s Dollar traded near its highest level in two months following the release of a report which showed approvals to build homes rose for a 5th consecutive month. New Zealand Dollar is currently trading around 74.31 U.S. cents, after reaching 74.40 cents earlier today. The currency also gained against the Japanese Yen to currently trade at 68.26 Yen, after reaching a high of 68.35 in today’s early trading.
The NZD was also boosted as New Zealand’s commodity export prices rose for a 10th straight month in December. Prices gained 2.6% in December after surging a record 10.5% in November. Exports make up a third of New Zealand’s economy. The slew of recent optimistic economic data is substantiating the recovery is strengthening and lending support to the NZD despite the fact that Reserve Bank Governor Alan Bollard reiterated he is unlikely to raise borrowing costs from a record low until the middle of 2010. The NZD is also benefiting as Chinese economic outlook remains positive as China is one of New Zealand’s largest exporting partners.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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