Is There Something That Keeps The NZD From Falling?

The New Zealand dollar remained strong in Wednesday's trading session despite continued pressure from the weakening Aussie dollar and the stronger US dollar.

This strengthening has been supported by New Zealand’s economic prospects heading towards recovery from the coronavirus pandemic crisis after all sanctions across the country were lifted last week.

New Zealand's success in curbing the spread of the Covid-19 epidemic has boosted investors' confidence in the country's economic recovery.

However, kiwi currency trading is still under threat due to the Reserve Bank of New Zealand (RBNZ) which is said to be actively considering the implementation of negative interest rates.

RBNZ Assistant Governor Christian Hawkesby said on Wednesday that the central bank was not kidding to implement negative interest rates.

Meanwhile, the weakness of the Aussie dollar in the previous session has dragged the kiwi dollar trade to decline, but the decline was not so great, as the currency continued to trade around the 0.6660 price level against the USD.

Aussie dollar trading has previously been weakened by reports of China stopping Australian coal imports. The new coal is the second major product for Australia after iron ore and China's actions as the biggest buyer will definitely affect the country's economy.

The next investor focus will be on the New Zealand general election which will be held on 17 October. Prime Minister Jacinda Ardern is expected to win the election following her success in tackling the coronavirus crisis twice in a row.