Resurgent USD forces the NZD down 0.84%
Daily Currency Update
The New Zealand dollar struggled on Friday, falling 0.84% to open this morning at 0.6799. Weighed down by risk-off moves in equity markets as well as Omicron concerns globally, the Kiwi fell steadily through Friday trade.In what proved to be a day of two halves, the Kiwi initially started in positive territory with mid-week momentum sending the Kiwi to within touching distance of 0.69. The resultant high of 0.6889 was the first time the Kiwi touched the level since late November 2021. Ultimately, however momentum shifted rapidly with the Kiwi falling on the back of poor retail sales figures from the US. The contraction in the US retail sector spurred on a flight to safety and saw a broad-based sell-off in risk assets.
Moving into the new week, the Kiwi looks to China for direction with Chinese GDP figures set to take center stage.
Key Movers
The US Dollar Index rose 0.4% to open this morning at 95.17. Aided by a broad-based risk-off tone, the greenback shrugged off poor retail sales figures and PPI numbers to break the downward trend it had faced throughout the week. Despite the late comeback at the weekly close, the greenback remains fragile if data continues to be mixed. That being said, volatility is tempered somewhat when considering the hawkish tone of the FOMC. Either way, US data releases will continue to be of keen interest to market participants.Expected Ranges
- NZD/USD: 0.6758 - 0.6839 ▼
- NZD/EUR: 0.5917 - 0.5988 ▼
- GBP/NZD: 1.9951 - 2.0192 ▲
- NZD/AUD: 0.9372 - 0.9485 ▲
- NZD/CAD: 0.8490 - 0.8592 ▼