Dollar was trading lower in today’s Asian session, as many investors are sideline ahead of US jobs report data on Friday.
Investors are now confirmed about the expected rate increase in next Federal Reserve meeting on 14th and 15th March. The dollar has depreciated due to the trading along the lines of “buy the rumor, sell the fact,” after several Federal Reserve official speeches in previous weeks, also Fed chairwoman Janet Yellen also commented about expected rise of interest in upcoming meeting.
Traders are now guessing what is coming next after the interest rate increase, in ordinary times traders buy U.S on rate increase, but after fully factoring the event investors cannot buy further.
Investors are waiting cautiously for Friday’s US jobs data which will further confirm the increase in interest rates.
New Zealand dollar:
New Zealand dollar fell sharply in today’s session due to sharp decrease in dairy product prices as expected.
In Global auction overnight, whole milk powder prices fell 12.4% and skim milk powder prices decreased 15.5%. Milk powder is New Zealand’s biggest exports and decrease in prices will directly affects the trade balance of a country.
The pair is still attempting to test the lower range as the dairy auction is unlikely to help the sentiments. New Zealand dollar dairy prices were at peak for previous few months, so the weakness might just be unwind.
Common wealth of Australia also lowered its milk price forecast from 6.50$ per kg to 6.00$ per kg, and indicated that the lower prices will weigh on the New Zealand dollar.
Australian dollar is higher in today’s Asian session.