NZD/USD slides further below 0.7100

NZD/USD is trimming weekly gains on Friday, amid a stronger US dollar across the board. The kiwi weakened in the market after the beginning of the American session and reached fresh lows.

The pair that yesterday after receiving a boost from the statement of the Reserve Bank of New Zealand (RBNZ) climbed to 0.7147, hitting the strongest level in a year, today is pulling back. Recently dropped below the 0.7080 area and printed a fresh daily low at 0.7066, where currently trades. It is the first decline after rising sharply during the previous three trading days.

Compared to the level it had a week ago, NZD/USD is 130 pips higher and about to post the highest weekly close since May 2015.

Week ahead

The main event next week will be the Federal Reserve Board of Governors meeting that will likely impact on the US dollar. In New Zealand, economic data to be released includes current account (Tuesday) and Q1 GDP (Wednesday). Also new dairy prices will emerge from the Fonterra auction on Wednesday.