The New Zealand dollar will remain in focus after trading on Wall Street ends this evening, as Statistics New Zealand releases the latest growth estimate. The nation’s GDP is expected to have expanded by 0.8% in the fourth quarter of 2017 compared to 0.6% in Q3. If the data beats expectations then the kiwi, which has been outperforming her peers, could further extend its gains.
The forex markets were relatively calm today. All eyes were on Wall Street as investors tried to gauge the appetite for risk as the indices bounced around key levels after their significant falls the day before.
Investors remain in reflection mode as the quiet week continues; NZD edges higher as RBNZ acknowledges the inflationary impact of weaker currency; Chinese inflation beats expectations but remains below target; Brexit talks resume but is anyone optimistic at this point?
Once the FOMC meeting and press conference are both out of the way, the near-term direction for the dollar should become clearer. For those who prefer to focus on something else, crude oil or a non-dollar FX pair would be a good place to start.