The two key local drivers of the NZ dollar value, interest rate differentials and commodity prices, have both moved both significantly higher and suggest that the Kiwi should be strengthening to back above 0.7000 against the USD. The fact that the NZD/USD has been under pressure the other way over recent weeks, tells you that international investors and traders in the Kiwi are ignoring these variables and following greater forces. Typically that would be movements in the EUR/USD as a lead to how the US dollar is trading against all currencies. However, a stronger USD on global currency markets has not been the reason ... (full story)