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  • Another day of gains for NZD/USD has seen the pair rise above the 0.7050 level and its June 2018 highs.   
  • Kiwi traders are looking ahead to Terms of Trade data released early in the Wednesday Asia session.

NZD/USD has continued to march to the upside, with the pair advancing above both the 0.7050 mark and the June 2018 highs at 0.7060 on Tuesday. As things stand, NZD/USD trades with gains of over 50 pips of around 0.7%.

NZD still one of the best G10 performers

The kiwi continues to outperform its antipodean rival AUD by a solid margin on the week; the former is up vs the US dollar by roughly 0.6% already on the week, while the latter trades with losses of around 0.2%.

A solid result to the Fonterra GlobalDairyTrade auction just after 14:30GMT, which saw diary prices rise 4.3% on the week, is likely to be supporting NZD; as a reminder, New Zealand’s main export is diary products.

Further New Zealand domestic data is out in the early part of the Wednesday Asia session; at 21:45GMT, Terms of Trade data for Q3 is released and is expected to show exports up 4% QoQ, export prices down 3.5% and import prices down 1.0%.

However, NZD continues to outperform more as a result of global macro reasoning; the trade dependent nation looks set to benefit from expected improvements in global trade and travel conditions in 2021 as the world gets vaccinated and international relations improve with the Biden administration in charge of the US. Moreover, the country has contained the pandemic well, meaning its economy has not been hit nearly as hard as other developed markets, while the country is not seeing a significant deterioration in ties with China, as Australia has over recent weeks.

NZD/USD key levels