Home Daily Commentaries NZD recovers amid news of ceasefire

NZD recovers amid news of ceasefire

Matt Richardson
Written by
Matt Richardson

Matt Richardson

OFXpert

Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange.

| Wednesday 25 June, 2025

Daily Currency Update

The New Zealand dollar climbed back through US$0.60 Tuesday following reports a ceasefire between Israel and Iran has been brokered. Equity markets and risk assets rallied with US treasury yields falling as risk sentiment improved. The NZD climbed off intraday lows just south of US$0.5975 to mark intraday highs at US$0.6038 before settling nearer US$0.6010. Softer US consumer confidence data and dovish commentary from Fed Chair Jerome Powell helped add a floor underneath the NZD as the USD faced mounting downside pressure. The NZD also clawed back ground against the euro pushing back toward 0.52 while sliding against the GBP, eyeing a break below 0.44.

Our attention now turns to Trade balance numbers while Australian CPI data, bank of Japan meeting minutes and commentary from Fed Chair Jerome Powell dominate the offshore macro ticket.

Key Movers

News of a ceasefire between Israel and Iran helped drive gains across equity markets and risk assets while oil prices and the USD fell. The USD DXY index gave up 0.5% led by gains across the CHF, JPY and risk assets while the NOK and CAD both retreated as oil prices slid. WTI crude is now down below $64 while Brent Crude is back below $67. Risk sentiment continues to drive direction yet US yields fell following softer consumer confidence data and dovish commentary from Fed Chair Jerome Powell.

Our attentions remain attached to geopolitical tensions and while a ceasefire has been declared reports of missiles still flying continue ensuring uncertainty and volatility remain elevated.

Expected Ranges

  • NZD/USD: 0.5980 - 0.6080 ▲
  • NZD/EUR: 0.5150 - 0.5230 ▲
  • GBP/NZD: 2.2500 - 2.2700 ▲
  • NZD/AUD: 0.9200 - 0.9300 ▼
  • NZD/CAD: 0.8200 - 0.8300 ▲

Written by

Matt Richardson

OFXpert

As a Senior Corporate Client Manager, Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange. Matt has clients who he has been working with for over a decade, a testament to his knowledge and dedication in the field. Matt is also a regular contributor on Ausbiz, offering clear and precise updates on currency market trends, showcasing his ability to interpret complex financial data into actionable insights.