Kiwi is best performing major currency on bullish outlook

New Zealand dollar rose in European trade against a basket of major rivals, extending gains for the fifth straight session against US dollar and scaling five-week highs.

The gains come amid bullish outlook for the New Zealand dollar at upcoming meetings following recent New Zealand data.

NZD/USD rose 0.6% to 0.6316, the highest since April 4, with a session-low at 0.6263. 

Kiwi rose 0.2% on Friday against US counterpart, the fourth profit in row as the greenback weakened overall.

Highest Performing Currency

Kiwi spiked today to five-week highs against both the euro and the US dollar, and four-week highs against sterling and Swiss franc, and give-month highs at yen at 85.80.

New Zealand Labor Data

Recent data showed New Zealand's employment rose 0.8% in the first quarter, improving from a 0.5% increase in the previous reading, and beating estimates of a 0.4% increase.

Such data showed the resilience of the labor sector and increases pressure on the central bank.

RBNZ

The Reserve Bank of New Zealand raised interest rates at the April 5 meeting by 0.5%, beating estimates of a 0.25% increase, to 5.25%, the highest since October 2008.

The RBNZ said that inflation remains high in the short term, raising risks of inflation in upcoming months.

New Zealand Rates

RBNZ's outlook for February shows interest rates need to reach 5.5% to bring inflation under control.

It shows the bank expects another 0.25% rate hikes at the upcoming May 24 meeting.