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Kiwi rises 0.13% on the back of record highs on Wall Street

Monday 28 June, 2021

Daily Currency Update

The Kiwi continued its upward trend on Friday, rising 0.13% against the Greenback to open this morning at 0.7063. The Kiwi primarily benefitted from a general positive market mood and saw moves towards the 0.71 mark before moderating gains at the close. Nevertheless, the Kiwi opens this morning on a bit of a bull-run after 4 of the last 5 days saw gains for the Kiwi, a significant turn-around from the previous weeks lows. There wasn’t too much on the economic calendar to drive momentum but US President Joe Biden announced on Friday that a bipartisan deal has been reached on the infrastructure plan. The announcement lacked specific details but there was enough there to boost wall street with the S&P500 hitting a record high. Consequently, other risk assets like the Kiwi also saw a boost, although gains were tempered in currency markets when the US Dollar hit back at the market close. Moving into a new week, the Kiwi is set to enjoy a quiet week on the economic docket with direction to be driven by headlines and risk sentiment.

Key Movers

The Kiwi continued its upward trend on Friday, rising 0.13% against the Greenback to open this morning at 0.7063. The Kiwi primarily benefitted from a general positive market mood and saw moves towards the 0.71 mark before moderating gains at the close. Nevertheless, the Kiwi opens this morning on a bit of a bull-run after 4 of the last 5 days saw gains for the Kiwi, a significant turn-around from the previous weeks lows.
There wasn’t too much on the economic calendar to drive momentum but US President Joe Biden announced on Friday that a bipartisan deal has been reached on the infrastructure plan. The announcement lacked specific details but there was enough there to boost wall street with the S&P500 hitting a record high. Consequently, other risk assets like the Kiwi also saw a boost, although gains were tempered in currency markets when the US Dollar hit back at the market close.
Moving into a new week, the Kiwi is set to enjoy a quiet week on the economic docket with direction to be driven by headlines and risk sentiment.
The Great British Pound had an eventful week but ultimately succumbed to dovish signals from the Bank of England and the Delta strain of COVID-19 at the close. Opening this morning at 1.3877, the pound recorded a 0.29% decline on Friday to end the week under pressure. The role reversal from the previous weeks Fed induced rally came late last week as the Bank of England disappointed Hawks with their surprisingly dovish stance on Monetary Policy, a stark contrast to their counterparts across the Atlantic. Adding fuel to the fire was also more Brexit bickering and another rise in COVID-19 cases related to the much more infectious delta strain. The rapid rise in cases could threaten to derail the already delayed economic reopening which only exacerbated the pressures on the Sterling.
The Canadian dollar also enters our Key Movers section today as it appreciated 0.21% to open this morning at 1.2295. The Loonie, like the Aussie and Kiwi, benefitted from the turn in risk sentiment which saw commodity currencies rise against the Greenback. There wasn’t too much to drive the CAD domestically however.

Expected Ranges

  • NZD/AUD: 0.9252 - 0.9363 ▲
  • NZD/CAD: 0.8640 - 0.8745 ▼
  • NZD/EUR: 0.5883 - 0.5954 ▲
  • GBP/NZD: 1.9526 - 1.9762 ▲
  • NZD/USD: 0.7023 - 0.7108 ▼