NZ Dollar Endangered by US Data & Market Sentiment

The New Zealand dollar attempted to rally against its US counterpart and to trim its earlier losses versus the Japanese yen. The currency will likely have problems in achieving those goals due the unexpectedly good unemployment data from the United States and the risk aversion caused by geopolitical tensions in the Middle East.

The kiwi’s performance was very similar to that of the UK pound as the currency was rising against the US dollar and attempted to bounce versus the yen. Yet the New Zealand dollar will have hard time holding ground against its US peer after data revealed that jobless claims fell unexpectedly in the United States last week. The general market sentiment was also adverse to the New Zealand currency as Saudi Arabia’s air strike in Yemen made traders less willing to purchase riskier growth-related currencies.

NZD/USD inched up from 0.7603 to 0.7615 as of 12:56 GMT today while its daily high was at 0.7663. NZD/JPY fell from 90.83 to 90.61, dropping as low as 89.94 earlier.

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