The New Zealand dollar fell today, following the yesterday’s rally, after the government report showed the inflation slowed more than expected in the third quarter.

The ever-shifting mood among Forex market participants, caused by the uncertain prospects for a resolution of the European struggle with debt, translates into violent swings and an unpredictable behavior of currencies. The behavior of the New Zealand dollar wasn’t very different, yet the currency managed to gain as there was a reason for optimism.

The New Zealand dollar fell today, reaching the lowest level vs. the US currency in almost 6 months, following the sovereign credit rating downgrades performed by Standard & Poor’s and Fitch Ratings agencies.

Both the Australian and the New Zealand dollars appear to be benefiting from the Asian stock market recovery, rising from the yesterday’s strong fall.

The Japanese yen fell against all of its major counterparts today, including the US dollar, as the optimism regarding the European debt troubles situation changed the risk-averting mood of the markets to positive.

The New Zealand dollar slumped today after the report showed that the nation’s economic growth almost stalled in the second quarter of this year.

The New Zealand dollar dropped today after the government report showed the nation’s current account deficit widened in the second quarter of this year.

The New Zealand dollar jumped today after the Reserve Bank of New Zealand maintained its interest rates yesterday and signaled that the good health of the nation’s economy can lead to higher rates in the future.

The New Zealand dollar fluctuated against the US dollar and dropped against the Japanese yen after the report showed that food prices in New Zealand fell last month.

The New Zealand dollar jumped today on the speculation the US Federal Reserve will perform additional actions to support the faltering nation’s economy.