New Zealand’s Gross domestic product grew an estimated 4 per cent in the year to June making the country one of the strongest economies of the developed nations. This strong growth has considerable momentum, and to keep rising prices in check the combative move from the RBNZ will be to continue to raise rates.
When a country raises rates this gives the currency considerable strength due to the capital inflows looking for the greatest possible yields. Therefore it would be wise to look for buy opportunities on the Kiwi against its weaker counterparts such as the JPY, EUR and USD. As always, the market won’t be one directional so look for efficient entries on pull backs using your strategies for entry, stop and profit levels.