The Kiwi, just like its fellow comdoll, the Aussie, flexed its muscles against the dollar last Friday. The Kiwi staged a stellar rally, heading all the way to a high of 0.7440, more than 100 pips from its Asian open price.
The country’s producer price index which was just released today was ugly. Instead of remaining flat, the report showed that the prices of merchandise purchased by manufacturers decreased 1.1% during the third quarter, causing the Kiwi to shed a couple of pips.
Looking ahead, New Zealand’s cupboard doesn’t contain any high-impact economic reports so the Kiwi’s direction would probably be determined by the market’s risk tolerance once again.