NZD/USD falls as US dollar rises on risk aversion, RBNZ policy

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On Friday, the NZD/USD pair fell near 0.5870, down 0.54% as of this writing, as the US dollar strengthens amid geopolitical tensions and investor caution ahead of the upcoming US jobs report.

The New Zealand dollar (NZD) remains under pressure following the recent policy decision of the Reserve Bank of New Zealand (RBNZ), which left the Official Interest Rate (OCR) unchanged at 2.25% at its February meeting. Governor Anna Breman struck a cautious tone, indicating that monetary policy would likely remain accommodative to support the economic recovery. As a result, markets postponed expectations for the first interest rate escalate to later in the year.

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Kiwi is also burdened by rising energy costs. The closure of the Strait of Hormuz amid escalating tensions in the Middle East has pushed oil prices above $80 a barrel. This situation is particularly negative for New Zealand, which relies heavily on imported oil, further putting downward pressure on the domestic currency.

Meanwhile, the US dollar (USD) is benefiting from safe-haven demand amid current geopolitical uncertainty. Investors are also awaiting the report on non-farm payrolls in the US (NFP). Economists expect that approximately 59,000 jobs were created in the US economy in February. jobs, compared to 130 thousand in January, while the unemployment rate is expected to remain stable at 4.3%.

The stronger-than-expected reading could reinforce expectations that the Federal Reserve (Fed) will keep interest rates higher for an extended period of time, potentially providing additional support to the US dollar and maintaining pressure on the NZD/USD pair in the low term.

Today’s price of the New Zealand dollar

The table below shows the current percentage change of the New Zealand Dollar (NZD) against the major listed currencies. The New Zealand dollar was strongest against the euro.

USD EUR GBP JPY BOOR AUD NZD CHF
USD 0.37% 0.14% 0.21% -0.09% 0.11% 0.50% 0.09%
EUR -0.37% -0.22% -0.13% -0.46% -0.25% 0.13% -0.28%
GBP -0.14% 0.22% 0.06% -0.24% -0.03% 0.36% -0.06%
JPY -0.21% 0.13% -0.06% -0.30% -0.10% 0.27% -0.13%
BOOR 0.09% 0.46% 0.24% 0.30% 0.20% 0.59% 0.18%
AUD -0.11% 0.25% 0.03% 0.10% -0.20% 0.38% 0.02%
NZD -0.50% -0.13% -0.36% -0.27% -0.59% -0.38% -0.40%
CHF -0.09% 0.28% 0.06% 0.13% -0.18% -0.02% 0.40%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the New Zealand dollar from the left column and move along the horizontal line to the US dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

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