NZD drift further sideways
Daily Currency Update
The NZD has continued to slightly drift on a minor upward trajectory, enjoying almost 3 weeks of rises versus the USD. The last time this occurred was at the end of July 2024. Short term support was still found yesterday around the US$0.5720 since the dip from resistance level around the US$0.5780 mark. The NZD closed yesterday around the US$0.5730 mark versus the USD which was similar to yesterday's open. The NZD has been mid-table this week so far relative to a basket of major currencies and opened up marginally lower at US$0.5720 versus the USD today. There is little expected movement today on the NZD, however there may be volatility on the NZD/AUD cross on AU CPI Figures and as well as the NZD/JPY cross when Japan's CPI figures come out.Key Movers
CHF and JPY pairs have been relatively strong relative to other currencies for the past week, while AUD and USD both have been the two weakest. NZD, EUR and GBP at present are ranked as the mid-table from this basket of major currencies. Overall, the JPY has been the strongest currency since January as rate hike bets increase at the helm of the BOJ. Some mixed economic figures and 'Trumponomics 2.0' with Tariffs as the main arsenal and bargaining tool, the USD had some initial strength post inauguration, however, has declined since mid-December 2025.On the political front, Trump has stated that proposed tariffs on Canada and Mexico are expected to "be on time and to go ahead." The real curveball of the week however came when the US has sided with Moscow on the UN Resolution on Ukraine, subsequently casting doubt on the longer-term US-UK-EU alliance. Questions arise whether this cozying up to Russia is to influence potential post-war agreements to win back trade deals. Time will tell, each day will bring a new perspective.
News Today
AU – Construction Work Done, CPI
CH – UBS Economic Expectations
EU – German GFK Consumer Climate
JP – BOJ Core CPI
US – S&P/CS Composite-20 HPI y/y, HPI, CB Consumer Confidence, Richmond Manufacturing Index, FOMC Member Barr, Barkin Speeches
Expected Ranges
- NZD/USD: 0.5650 - 0.5800 ▲
- NZD/EUR: 0.5400 - 0.5500 ▼
- GBP/NZD: 2.1900 - 2.230 ▲
- NZD/AUD: 0.8990 - 0.9060 ▲
- NZD/CAD: 0.8130 - 0.8250 ▲