NZD/USD climbs as commodities soar
Monday 7 March, 2022
Daily Currency UpdateThe New Zealand dollar appreciated 0.9% to open this morning at 0.6860, its highest point since January 14th. This comes, despite the financial world remaining fixated on the global risks from the Russian invasion and a general flight to safety across equity markets.
Amidst a quiet day domestically, the commodity linked Kiwi appreciated due to a number of factors, but chief among them is soaring commodity prices. Prices from crude and nickel to aluminum and wheat rocketed last week, to record the largest weekly surge since the oil crisis in 1974.
In the upcoming week, the Kiwi will look to Manufacturing Sales, BusinessNZ Manufacturing Index and the M/M FPI domestically. Also this week, the US CPI and the EU will report their Monetary Policy statement. Of course however, the major focus throughout the week will be on the war in Ukraine.
Key MoversThe euro fell 1.24% against the Greenback on Friday to open this morning at 1.0929. The Great British pound also fell sharply, albeit not quite as much as the euro. Opening this morning at 1.3233, the sterling dropped 0.85% against the Greenback. Unsurprisingly, the EU’s proximity to the war and its reliance on Russian energy and trade made it a prime risk-off target throughout the week as the war in Ukraine evolved. Putin appears to have changed his strategy with a long, drawn out, devastating war potentially on the table. Furthermore, attacks on the Zaporizhzhia nuclear plant added another layer of uncertainty, which forced the euro even lower on Friday.
- NZD/USD: 0.6791 - 0.6928 ▲
- NZD/EUR: 0.6201 - 0.6326 ▲
- GBP/NZD: 1.9077 - 1.9462 ▼
- NZD/AUD: 0.9202 - 0.9388 ▼
- NZD/CAD: 0.8641 - 0.8816 ▲