NZDJPY: Improved risk outlook puts bulls in charge
NZD has gained in recent months from the market's improved risk outlook on global vaccine confidence.
The NZD's recovery is being aided by China's stronger-than-expected trade figures.
According to recent figures, May's imports and exports were likely positive.
A rise in commodity prices benefits the currencies of commodity-producing countries.
According to Bloomberg, the Reserve Bank of New Zealand (RBNZ) stated on Thursday that it will progressively sell off the government bonds bought during its quantitative easing (QE) program over the next five years.
When the (RBNZ) sells bonds, the money supply is reduced because cash is removed from the economy in return for bonds.
In the long run, decreasing a country's money supply leads its currency to appreciate.
The NZD's recovery is being aided by China's stronger-than-expected trade figures.
According to recent figures, May's imports and exports were likely positive.
A rise in commodity prices benefits the currencies of commodity-producing countries.
According to Bloomberg, the Reserve Bank of New Zealand (RBNZ) stated on Thursday that it will progressively sell off the government bonds bought during its quantitative easing (QE) program over the next five years.
When the (RBNZ) sells bonds, the money supply is reduced because cash is removed from the economy in return for bonds.
In the long run, decreasing a country's money supply leads its currency to appreciate.