New Zealand dollar continues to trade above 59 US cents
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Daily Currency Update
The New Zealand dollar is slightly stronger this morning when valued against the USD, currently trading at US$0.5950 at time of writing. The New Zealand dollar has risen to its highest level since early November 2024 against the US dollar after the optimistic comments from the US Treasury Secretary, Scott Bessent. The GBPNZD exchange rate has receded from post-referendum highs and could trade within the 2.2131 to 2.2467 range through the days ahead as markets process an array of policy-related statements coming from Washington. As Chief Economist at ANZ, Sharon Zollner puts it, “The Kiwi is certainly holding its own in a volatile environment. Indeed, NZDAUD is at its highest level since February last year even though the AUD, like the Kiwi, has more than made back its ground against the USD after reflexively plummeting on the initial tariff announcements”.Key Movers
The US Dollar Index (DXY) failed to hold onto its early strength during Wednesday’s session and now drifts near the 99.50 region, reflecting the continued uncertainty around US trade policy and softening of business momentum. US President Donald Trump says that if deals aren’t made, new tariffs could be set for China and other countries in a matter of weeks. US stocks ticked upward as global markets showed relief over signs that the Trump administration could ease up on tariffs. The positive signs also came after Trump backed away from the threat of firing Federal Reserve Chief, Jerome Powell. The S&P 500, Dow Jones and Nasdaq stock indexes all rose by more than 1% by close today. In economic data, the flash S&P Global Composite PMI for April fell to 51.2 from 53.5, suggesting slower overall business activity. While the Manufacturing PMI edged up to 50.7, the Services PMI slipped to 51.4 from 54.4 — highlighting waning demand in the services sector. S&P Global’s Chris Williamson noted that growth momentum is clearly weakening, while inflationary pressure remains, which could pose a challenge to the Federal Reserve’s (Fed) balancing act.Expected Ranges
- NZD/USD: 0.5850 - 0.6050 ▲
- NZD/EUR: 0.5150 - 0.5350 ▲
- GBP/NZD: 2.2200 - 2.2400 ▼
- NZD/AUD: 1.0600 - 1.0800 ▲
- NZD/CAD: 0.8150 - 0.8350 ▼