Global Themes

NZD

Kiwi returns to five-month lows as greenback stages comeback

Kiwi back at 2018 lows

The NZDUSD returned to five-month lows overnight as the US dollar staged a comeback from last week’s selldown.

The US dollar – recently stronger as US interest rates surged higher – paused at the end of last week after US consumer inflation prices missed expectations. The USD eased last week after gaining almost 5.0% over the last month.

However, the greenback started the new week stronger, with the US dollar index rebounding from two-week lows.

NZD losses

Pressure grows

The NZDUSD fell 0.7% to its lowest closing level since 8 December 2017.

The kiwi was weaker in most other markets.

The NZDEUR fell further as it reached the lowest level since 5 December 2017.

The NZD fell in most other European markets with the NZDCHF down 0.8% and the NZDGBP down 0.9%.

RBA minutes

NZDAUD vulnerable

Today’s market will be focused on the Reserve Bank of Australian minutes with details from the RBA’s 1 May meeting due at 1.30pm.

The NZDAUD fell to three-month lows overnight.

From overseas, European growth figures, due 9.00pm, and US retail sales, due at 12.30am, can drive a big session of potential moves overnight.

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