The NZD/USD pair extends to four days of losses in the North American session, courtesy of the financial markets’ risk-off environment since Friday. At the time of writing is trading at 0.6605.
Risk appetite is back so far. Updates crossing the wires that some Russian troops are returning to the base provided a lift up on US equity futures, while European bourses are in the green. The Russia/Ukraine narrative shift towards a diplomatic exit boosted risk-sensitive currencies to the detriment of safe-haven peers, namely the USD and the JPY.
Russian President Vladimir Putin does not want war in Europe but reiterated that his proposals had not been answered and the decision about a partial withdrawal of troops has been taken.
US Producer Prices approach the 10% barrier
Before the Wall Street Open, the US Bureau of Labor reported that the Producer Price Index (PPI) for January rose by 9.7% y/y, unchanged per the December reading but higher than the 9.1% estimated by analysts. On Core PPI metrics, they came at 8.3% y/y, lower than the 8.5% from December but larger than the 7.9% foreseen.
In the Asian Pacific session, New Zealand and China modernized their 2008 free-trade agreement (FTA). The NZ Minister of Trade and Export Growth Damien O’Connor said that “our primary industry exports forecast to hit a record $50 billion this year alone.”
The NZ economic docket featured Tourist Arrivals for December increased to 4.4%, from 3.8%, in the November reading.
Home / Market Update / Forex Market / NZD/USD Retreats From Daily Highs Despite Russia Troop Withdrawal
Tags AUD JPY NZD/USD Producer Prices Putin risk appetite Russian-Ukranian crisis
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