Daily Currency Update
NZD - New Zealand DollarThe New Zealand Dollar enjoyed strong gains through trade on Wednesday pushing through resistance at .60 to touch intraday highs at 0.6028. Investors largely ignored the ANZ survey of Business conditions for April while brushing aside suggestions the RBNZ’s QE program will likely increase in May. Instead improvements in risk sentiment and a broader reduction in volatility across financial markets help fuel demand for the NZD and enabled investors to unwind haven plays. Social distancing measures and extreme lockdown programs have successful slowed the rate of community transmission and allowed those hardest hits to begin considering the loosening of controls. Italy has allowed its citizen to again return to shopping for essentials while Austria has flagged the opening of key business sectors. With the promise of a return to normal growing just that little bit brighter the scope for NZD upside and a recovery of the March downturn continues to improve. Attentions remains squarely affixed to the unfolding pandemic. With volatility pressures easing supports are forming on moves below 0.59 while resistance on moves approaching 0.61 remain intact for now.
Key Movers
The US dollar edged higher through trade on Wednesday when measured against a basket of key major counterparts. Despite suffering significant losses against key risk and commodity driven currencies the US dollar index crept upward, buoyed by gains against the Yen and Euro. The Euro fell back below 1.09 as finance ministers failed to agree terms for a united package of support for companies, governments and individuals across the region. A proposed joint European bond was rejected by some countries with the Netherlands insisting that a blank cheque approach to lending was not acceptable and conditions must apply. Such demands were refuted by Italy, as the Italian government is not prepared to accept such conditions for fear of the political consequences at home and the restrictions it would place on their ability to rebound from this crisis in the months and years ahead. Talks are set to resume today.
Expected Ranges
- NZD/USD: 0.5880 - 0.6080 ▲
- NZD/EUR: 0.5320 - 0.5650 ▲
- GBP/NZD: 2.0280 - 2.0780 ▼
- NZD/AUD: 0.9570 - 0.9780 ▼
- NZD/CAD: 0.8280 - 0.8520 ▲