Daily Currency Update

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Kiwi ends 2020 at a 32 month high

NZD - New Zealand Dollar

The New Zealand dollar finished the year with a bang, hitting a fresh 32-month high just below 0.7240. Opening this morning at 0.7187, the Kiwi looks to have entered a consolidation phase and has been oscillating around the 0.72 level.

The Kiwi continued to benefit from US dollar weakness in the final week of 2020, posting a healthy gain of 1.26% against the beleaguered reserve currency. Growing hopes for a global economic recovery in 2021 also added a bullish undertone for risk assets with the Kiwi no exception.

Moving into the first week of 2021, the Kiwi again enjoys a quiet economic calendar to start the week.

Key Movers

The US Dollar continued to weaken throughout the close of 2020, softening against most of the majors. The impetus for the falls continued to be broader macro-economic in nature in the absence of any economic data. With the United States economy expected to falter in its recovery, COVID still running rampant, political risks expected to rise and the Federal Reserve printing money, the US Dollar finds itself under continued, sustained downward pressure.

Most of the majors have benefited from the Greenbacks erosion to some degree but the Kiwi, Sterling and Aussie are amongst the top performers.

Expected Ranges

NZD/AUD: 0.9260 - 0.9402 ▼

NZD/CAD: 0.9098 - 0.9235 ▲

NZD/EUR: 0.5834 - 0.5923 ▲

GBP/NZD: 1.8854 - 1.9139 ▼

NZD/USD: 0.7133 - 0.7240 ▲