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  • NZD/USD jumps to 0.7141, the highest level since April 2018. 
  • New Zealand’s Finance Minister squashes fears of FX market intervention. 

The bid tone around the NZD strengthened early Thursday, pushing NZD/USD to a fresh 32-month high after New Zealand’s Finance Minister squashed fears of verbal intervention by authorities to stem the Kiwi’s rise. 

“There is no great discomfort with the level of the NZD,” Robertson said, adding that the Kiwi’s strength reflects strength in the local economy. The NZD has appreciated by nearly 7.8% against the US dollar this quarter and is up 5.8% on a year-to-date basis. 

As such, some investors may be anticipating some form of intervention to stall the Kiwi’s rise. However, Robertson’s comments indicate that authorities aren’t worried about the disinflationary impact of the exchange rate strength and are unlikely to weaken the currency any time soon. 

NZD/USD jumped from 0.7115 to a fresh multi-month high of 0.7141, following Robertson’s comments, and was last seen trading near 0.7125. 

New Zealand’s economy roared back from a coronavirus-induced recession with a record growth of 14% in the September quarter; official data released early Thursday showed. The economy is reaping benefits of imposing strict coronavirus lockdown, Robertson said Wednesday. Coupled with the dovish Federal Reserve, that could keep the NZD better bid while heading into the year-end. 

Technical levels