Recent movements on the market indicate that the price of the currency pair NZD/CHF has dropped down by 0.70% at the time of writing. The currency pair is selling for 0.5968. It was forecasted that the Trade Balance of CHF would be 4.320B, however, as of now, it stands at 3.279B.
There are many reasons that affect the changing prices of the currency pair, one of the biggest ones being the Covid-19 situation around the world. Although the situation in this regard is very much stable in New Zealand, ongoing events around the world are affecting the price of the national currency of the country.
The national currency of New Zealand has declined in pairs of NZD/USD as well, experts are saying that it is connected to the fact that the market continues to be focused on negative rates. Experts are claiming that this situation could push rates negative to boost inflation further, which can be seen in the price of the NZD with many pairs.
Recently, the NZD/USD currency pair went down by 0.35%. This downtrend follows a somewhat positive economic number from the country. At the same time, the business confidence level in New Zealand is increasing. Experts have said that the business confidence level in the third quarter has improved significantly from -63% to -40%, which shows some positive outlook.
Most of the companies in the country have reported trading activity in the country to have been increased significantly, as the government works hard towards implementing the stimulus package. The Reserve Bank of New Zealand has also announced that they are working hard towards stabilizing the price of the national currency.
Price of NZD/CHF – How has it changed?
The Heiken Ashi chart shown above shows the changing prices of the currency pair. The chart indicates the movements from June 2020 to October 2020. As can be seen from the chart, the prices of the currency pair have been changing a lot in the last few months. The price of the currency pair started going down in June, after which, it increased slightly in July.
As experienced investors can see from the chart shown above, the price went down to the point of the support level in August, after which, the bounce can be seen on August 26-27, which was followed by the increase of the price of the currency pair. Since then, the price of the currency pair was still very much unstable.
There are many reasons that affect the price of the currency pair, one of the biggest reasons being the situation around the world, and ongoing political events that are happening around the world every moment. The Covid-19 pandemic has affected every part of the economy around the world, and although it did not spread that much in New Zealand, the national currency of the country was still affected because of the restrictions that were adopted.
The tourism sector has shrunk significantly in the country, which is one of the biggest contributors to the economy of New Zealand, the result of which can be seen very easily.
The government of New Zealand is working on an unprecedented stimulus package, that can help the economy of the country a lot. Because of the ongoing events in the country, a huge part of all companies in the country has reported having a huge increase in trading activity, as the government of the country is working to implement the stimulus package.
As a result of this situation, most of the companies in the country are still continuing to hire more people and invest in their own growth, which has helped the labor shortages in some of the industries of the country.
The construction industry is one of those that are doing really good in the country, which is expected to improve significantly over the next few months. The government has also noted that it is ready to use the budget in response to the pandemic, which will cause the economy of the country to have some benefits.
Recently, Switzerland has announced that it would adopt new restrictions to fight against the spread of the Covid-19. As the government has announced recently, everyone in the country is now required to wear face masks indoor areas, and the meetings in large groups will be also limited. The new measures were in full force on Monday, October 19th.