The New Zealand Dollar (NZD) has been able to maintain its position above 0.6200 against the US Dollar (USD), despite the US Dollar weakening and lacking bullish momentum. This is due to the NZD being supported by a number of factors, including the country’s strong economic growth and its solid fundamentals.
The NZD has been able to remain strong against the USD due to the country’s strong economic performance. New Zealand’s economy has been growing at a steady pace, with GDP growth of 3.3% in the first quarter of 2019. This is well above the global average of 2.4%, and is expected to remain strong in the coming quarters. This has helped to support the NZD, as investors are attracted to the country’s strong economic performance.
In addition, the NZD is also being supported by its solid fundamentals. The country’s inflation rate is low at 1.5%, which is well below the central bank’s target of 2%. This has helped to keep interest rates low, which has been a key factor in supporting the NZD. In addition, New Zealand’s current account balance is also in surplus, which is another factor that has been helping to support the currency.
Despite these factors, the NZD has been unable to generate any significant bullish momentum against the USD. This is due to the fact that the US Dollar has been weakening in recent weeks, as investors have become more risk-averse due to global economic uncertainty. This has caused investors to move away from riskier assets such as the NZD, and instead focus on safe-haven currencies such as the USD.
Overall, the NZD has been able to maintain its position above 0.6200 against the USD, despite the US Dollar weakening and lacking bullish momentum. This is due to the country’s strong economic growth and its solid fundamentals, which have been helping to support the currency. However, it remains to be seen if the NZD will be able to generate any significant bullish momentum in the near future, as global economic uncertainty continues to weigh on investor sentiment.
Source: Plato Data Intelligence: PlatoAiStream
