Forex Flash: NZD falls as the dollar fortifies – BNZ

The NZD has been leaking lower throughout the past 24 hours, more a function of a generally firmer US dollar than for any idiosyncratic reasons, noted the BNZ Research Team. From a level around 0.8320 at yesterday’s local close, the NZD/USD dropped steadily to a low of 0.8242 and currently sits only a little above here.

Firmer US stocks, aided by better than expected initial unemployment claims and a strong Chicago PMI print have failed to support the traditional ‘risk-on’ currencies such as the NZD and AUD, though it is notable that risk appetite proxies by such things as the VIX have in fact not moved despite the better equity market showing.