NZD/USD Bulls Push Against Ukraine Crisis Risks
- NZD/USD remains positive despite risk aversion sentiment.
- The Ukrainian crisis remains in control with an eye on central banks.
NZD/USD is trading in bullish territory on Thursday after a strong performance on Wednesday. The currency rose from a low of 0.6927 to a high of 0.6998. The bulls were out in force as the euro rallied and risk assets surged on cautiously bullish headlines surrounding the Ukraine-Russia peace talks.
However, markets were rocked by headlines to the contrary as well as sentiment around the central bank’s outlook. nevertheless, the NZD managed to stay on its flight path and ended the day higher. ”The Kiwi is even higher this morning, knocking 70 cents as it takes a lead on the higher EUR, which has, in turn, risen as high inflation looks set to force its hand dovish from the ECB,’” explained analysts at ANZ Bank.
”AUD is also higher, but to a lesser extent, and this has seen a rebound in NZD/AUD (see below), but this also clearly demonstrates how the Kiwi has seemingly been able to hold onto any positivity lately. But of course, when that happens, choppy markets can turn quickly. Still, we believe the revival of the EUR and AUD will be key to NZD’s performance in the coming weeks, and the writing appears to be on the wall on this score given market expectations for increases and recent inflation readings.
Ukraine peace talks, no progress
Russian forces shelled the outskirts of kyiv on Wednesday and it followed warnings from the US administration that they were skeptical of Russia’s promise to scale back its military assault on Ukraine.
Moreover, the Ukrainian Ministry of Defense and the Polish Deputy Prime Minister crossed the wires and declared that Russia was preparing for a new attack in Ukraine. Everything indicates that we are facing a long war, tweeted Aljazeera, quoting the Polish Prime Minister. A Ukrainian Defense Ministry spokesman said the Russian military continues to aim to take control of Mariupol, a strategic city in the east, saying a major withdrawal is not taking place and that Russia is ready to resume the attacks. Discussions will resume on April 1.