Home Daily Commentaries NZD: Worst performer among majors through the last 24 hours

NZD: Worst performer among majors through the last 24 hours

Daily Currency Update

NZD - New Zealand DollarThe New Zealand dollar was the worst performing currency through trade on Thursday, falling through 0.60 and dipping below 0.5950 to touch intraday lows at 0.5922. The NZD came under renewed pressure following comments from RBNZ Governor, Adrian Orr. In a parliamentary hearing Orr acknowledged the bank had not ruled out increasing the current QE setting or a move to negative interest rates should the current platform fail to provide adequate economic support. The downturn was compounded by a flattening in risk demand, prompting a broader USD rally. The NZD remains vulnerable to an extended risk-off environment, with a break below last months lows not out of the picture. Having edged higher into the open the NZD has enjoyed strong gains through the early hours of trade on Friday as promising results from clinical trials in the US suggest a drug to combat coronavirus could be available sooner rather than later. Having jumped back through 0.5950 the NZD currently buys 0.5982 US cents and appears set to test a break back above 0.60.

Key Movers

The US dollar advanced through trade on Thursday, touching a one week high as the flight to safety continued. US jobless claims increased exponentially again as another 5.2 million citizens’ filed for unemployment. Twenty-two million Americans have now lost their job through the last month, a staggering 13% of total workforce and a stark reminder of the scale of the economic impact caused by the global public health crisis that is the coronavirus. The dollar moved higher against most majors, advancing against the yen as Japan extended its state of emergency to envelop the nation and not just major cities while the euro fell back below 1.09. The combined unit remains under pressure as last week’s half-trillion euro support package is broadly seen as insufficient, essentially falling short of the number needed to support the continent through the ongoing pandemic. Attentions today remain with short-term risk flows and we expect the dollar will remain well bid as uncertainty continues to dominate direction.

Expected Ranges

  • NZD/USD: 0.5880 - 0.6080 ▼
  • NZD/EUR: 0.5430 - 0.5580 ▼
  • GBP/NZD: 2.0580 - 2.1120 ▼
  • NZD/AUD: 0.9360 - 0.9505 ▼
  • NZD/CAD: 0.8330 - 0.8480 ▼