The New Zealand currency is under pressure again as the US dollar strengthens.
NZD stays supported due to the positive domestic picture.
The NZD/USD currency pair is now trading at 0.7010, down 0.16 percent, with a low of 0.6988 and a high of 0.7105.
The New Zealand dollar is significantly below the 0.71 level from yesterday’s session, when a number of analysts predicted a rate hike (with a hike being priced in at 90% by November).
“The overnight collapse/reversal in oil (from a multi-year high) has wreaked havoc on commodity currencies, reduced risk appetite, and weighed heavily on stocks,” according to ANZ Bank analysts.
“We believe the NZD can withstand this challenge (we’re not an oil exporter) given the positive domestic outlook, as reinforced by yesterday’s NZIER QSBO survey (which matches our own ANZBO survey), but expect volatility.”/nRead More