Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

Kiwi unchanged as Trump allays fears of US retaliation in the Middle East

NZD - New Zealand Dollar

The New Zealand Dollar remains relatively unchanged today opening this morning at 0.6650 against the US Dollar despite at one point hitting as high as 0.6670. It was a day of two halves for the Kiwi with the New Zealand Dollar bouncing higher to start the day as the US dollar weakened slightly. Nevertheless, the Kiwi then came under pressure as global risk sentiment turned and risk assets were sold with the Kiwi no exception. Falling to as low as 0.6645, the Kiwi did find its feet in the end however with President Trumps speech allaying fears of a US retaliation.

In what proved to be a pivotal day for geo-politics, resulted in a subdued day for FX markets with only marginal declines for the Kiwi throughout the day. There was a distinct flight to safety at one point of the day however with risk sentiment deteriorating on the prospect of another conflict in the Middle East. Despite the escalation between the US and Iran, the market turned a corner when President Trump announced that no American citizens were harmed and hinted at no further retaliation. The Kiwi bounced significantly on the news to stay level pegging with yesterday mornings’ open.

Moving into Thursday, the New Zealand Dollar will turn to its neighbor Australia for direction with Australian November Trade Balance set for release.

Key Movers

Markets remained relatively static throughout Wednesday with little on the economic calendar to drive direction. There was ADP Non-Farm Employment Change in the US that did strengthen the Greenback throughout the day but momentum was primarily dictated by the escalation in the Middle East. Risk assets took a tumble initially as news filtered through from the region with the notable sharp fall in US bond yields leading the way. Nevertheless, President Trump allayed fears of a full-scale escalation which ultimately improved risk sentiment to result in a neutral day for FX markets. Opening this morning at 97.27 on the US Dollar Index, the US Dollar remains a strong performer with an increase of 0.27% for the day.

Expected Ranges

NZD/AUD: 0.6834 - 0.6901 ▼

NZD/CAD: 0.8639 - 0.8702 ▲

NZD/EUR: 0.5952 - 0.6017 ▲

GBP/NZD: 1.9667 - 1.9728 ▼

NZD/USD: 0.6619 - 0.6682 ▲