The New Zealand Dollar tumbled on Wednesday to its lowest level February 13. The selling was fueled by traders increasing bets on a rate cut by the Reserve Bank of New Zealand later this year. The catalyst behind the selling pressure was a weaker than expected Australian Gross Domestic Product report.
Early Thursday, the Kiwi is trading slightly better. Oversold conditions may be behind the strength, given the currency is down eight sessions from its last main top on February 25. The New Zealand Dollar is also diverging from the Australian Dollar, which is trading lower in reaction to mixed economic data.