The New Zealand Dollar has lost ground over recent sessions despite positive dairy price data, and this was probably as a result of the currency absorbing political risk.
The New Zealand Dollar lost ground last week as political risks started to dominate the exchange rate ahead of the September 23 elections and a downwards revision in government growth forecasts also weighed.
The Pound to New Zealand Dollar pair has been trading sideways since the beginning of June and it reamins within that broad range, trading with an upside bias as the new week begins.
The New Zealand Dollar to US Dollar has stalled at a key trendline at 0.7300 and now analysts see the pair rotating and falling as the New Zealand Dollar (Kiwi) loses ground due to a negative fundamental backdrop.
The Pound has pushed higher against the New Zealand Dollar as easing UK political risks supported sterling after Theresa May’s government returned to office.