The New Zealand Dollar continues to consolidate in the general risk-off environment over the past 24 hours. Initially, the Kiwi dipped to a fresh low of 0.6548 but otherwise held its ground as emerging markets broadly softened, and market conditions favored the strengthening Greenback. Opening this morning at 0.6593, the NZD looks to be stuck in a number of geopolitical cross-currents.
Overall, the New Zealand Dollar was caught in the cross-winds as broad weakness in emerging markets, falling commodity prices, US Monetary Policy, Chinese growth and trade wars all begin to take its toll. As a currency that benefits from risk-taking, this environment does not help the Kiwi’s fortunes. The New Zealand Dollar now looks to hold its ground with attention firmly affixed to off-shore events.