Nzd usd

[Daytr]

By strengthening the USD, higher US interest rates stimulate other economies’ exports. This makes the kind of global recession that so many predicted even less likely.
If you take away the reason for "flight to safety = USD", and NZ exports are becoming more competitive due to currently weaker NZD, you have a surprise building for NZD shorters.

Agreed re flight to safety, but NZ is a net importer so the balance of payments each month is against you.
The NZD seems to have stabilized and has finally broken back above 0.59 as I write.
But the chart still doesn't look great.
It's far more likely that it will be a USD move than an NZD move that breaks the trend.
It's quite a good move here against the dollar so it will be interesting to see if it is a turning point.

If the dollar does turn it does make me wonder where oil might end up.

[beacon]

Agreed re flight to safety, but NZ is a net importer so the balance of payments each month is against you.

It's far more likely that it will be a USD move than an NZD move that breaks the trend.

Agreed about the chart, and that it will primarily be a USD move. But US is a net importer so the balance of payments each month is against them too.

A weaker domestic currency stimulates exports and makes imports more expensive. This can suppress import demand, and can be disinflationary.

A strong domestic currency hinders exports and makes imports cheaper. This can boost import demand, can be inflationary, aggravate BoP, and deficits.