FXstreet.com (London) - Kiwi pulled back a fraction of its previous day losses to the dollar in early Asian trading. Dollar has soared against the majority of its trading partners on Dec 8, as an overexcited market calmed and withdrew back to safe haven assets.
NZD has ascended sharply throughout the year, damaging exporters competitiveness. Fiscal policy from the central back has so-far failed to slow the NZD, highly correlated to AUD and by association, gold.
NZD/USD currently trades at 0.7079/83. Pair likely to trade rangebound this session as market eyes cues from major economies. In Asian trading range has been established between the days tested highs and lows of 0.7084 and 0.7061.
The Reverse Bank of New Zealand's quarterly monetary policy statement is due this Thursday, rates are expected to stay fixed at their current level, 2.5%.