Home Daily Commentaries NZD outperforms again extending its post liberation day recovery

NZD outperforms again extending its post liberation day recovery

Matt Richardson
Written by
Matt Richardson

Matt Richardson

OFXpert

Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange.

| Wednesday 16 April, 2025

Daily Currency Update

The New Zealand dollar outperformed Tuesday, outpacing all major counterparts despite a stronger USD. With fewer negative tariff headlines to digest price action calmed allowing risk assets to edge higher. The NZD pushed above US$0.59 during the domestic session marketing intraday highs just shy of US$0.5950 at US$0.5944 before edging lower overnight. Despite paring gains, the NZD is still the strongest major through the last 48 hours advancing against all key crosses as well as testing a break above A$0.93 against the AUD, while pushing above 0.5250 against the euro,0.45 against the British pound and 85 against the Japanese yen.

Our attention remains on tariff headlines as Q1 GDP data and monthly activity indicators from China, while US retail sales data are expected to show a solid uptick as consumers front load spending ahead of looming tariffs.

Key Movers

The US dollar advanced Tuesday, halting a 5-day sell-off as markets paused to assess potions. The euro fell off highs above 1.14, sliding below 1.13 as EU and US trade negotiations stalled. With analysts seeking to divest US assets and seek alternative haven strongholds, the euro has found support, surging through the last 2 weeks to mark highs near 1.1450. The correction on Tuesday suggests some profit-taking. Sterling edged higher up 0.3% while the yen continues to find support as a haven target forcing the USD below 143. The Canadian dollar underperformed down half a percent following softer-than-anticipated quarterly inflation data. Canada’s headline CPI inflation print fell 0.4% in the year to March, well above market estimates. The steep decline in price pressures prompted speculation the Bank of Canada may cut rates again this evening, yet the consensus suggests rates will remain on hold.

Our attention remains on tariff headlines.

Expected Ranges

  • NZD/USD: 0.5800 - 0.5950 ▲
  • NZD/EUR: 0.5150 - 0.5250 ▲
  • GBP/NZD: 2.2250 - 2.2550 ▼
  • NZD/AUD: 0.9250 - 0.9320 ▲
  • NZD/CAD: 0.8150 - 0.8300 ▲

Written by

Matt Richardson

OFXpert

As a Senior Corporate Client Manager, Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange. Matt has clients who he has been working with for over a decade, a testament to his knowledge and dedication in the field. Matt is also a regular contributor on Ausbiz, offering clear and precise updates on currency market trends, showcasing his ability to interpret complex financial data into actionable insights.

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