December 22, 2011
It was a topsy-turvy day for the Kiwi as it made a strong rally during the Asian session only to erase its gains and end up lower against the Greenback. NZD/USD opened at .7695, reached a high of .7776, then closed at .7690.
It seemed that the risk rally from the other day couldn't be sustained as the Kiwi retreated from the .7750 area yesterday. The Kiwi barely even reacted to better than expected GDP figures from New Zealand, which revealed that their economy grew by 0.8% in the third quarter of 2011. This was a couple of notches higher than the estimated 0.6% reading and a huge improvement over the 0.1% uptick seen during the second quarter.
New Zealand's economic schedule is empty for the next couple of days so make sure you gauge risk sentiment properly to figure out where the Kiwi could be headed. Good luck!
"The only cable I watch is the pound baby."