The NZD USD trading pair glided through the first half of yesterday’s trading with the help of RBNZ news. The Reserve Bank of New Zealand said on Wednesday that it will hold on to its current cash rates.
The 1% cash rates of the RBNZ will remain as it is, maintaining record lows. The news caused the NZD USD to sail in positive territories in the early trading sessions.
However, after the news from the United States Federal Reserve and Trump’s impeachment came, the NZD USD quickly slumped. The greenback steadied on the latter half of Wednesday’s trading but remained on the defensive.
The NZD USD exchange rate went down by 0.50% or 0.0031 points in sessions. The NZD USD pair recorded levels from $0.6290 to $0.6349 in yesterday’s trading.
The US House of Representatives will launch a formal request for the impeachment inquiry over Trump’s presidency. According to reports, Trump sought help from Ukraine to form a smear campaign against former Vice President Joe Biden.
Biden is the front runner for the presidential election in 2020 for the Democratic party. Trump has denied the claims of the House of Representatives.
Critics still say that it is unlikely that the impeachment case will remove Trump from his post. However, the news was enough to support the dollar.
Despite the sudden fall of the NZD USD trading pair, the New Zealand dollar had a wild ride against other currencies.
Tha AUD NZD trading pair went down by 0.10% or 0.0010 points. The pair hit ranges from NZ$1.0702 to NZ$1.0765 in yesterday’s trading.
The GBP NZD exchange rate also declined by 0.29% or 0.0057 points, hitting levels between NZ$1.9641 and NZ$1.9783 in sessions.
Meanwhile, the EUR NZD trading pair went up by 0.25% or 0.0043 points in sessions. The single currency to kiwi pair saw ranges between NZ$1.7329 and NZ$1.7487 in Wednesday’s trading sessions.