NZD Drops as US Dollar Gains Strength Amid Oil Price Surge
The New Zealand Dollar has dropped to around 0.5870 against the US Dollar as the greenback gains strength against every major currency.
Oil prices have surged 3% to $77.30 per barrel after reports that vessels linked to the United States, Israel, and other countries Tehran considers hostile would be barred from the Strait of Hormuz under a proposed agreement.
However, gold and silver prices are falling, with gold down 0.09% and silver off 0.84%, on the same news.
The Chinese trade figures overnight show exports growing 22.2% in the year to July, down from 27%, while imports slowing to 27.9% from 36%. The trade surplus narrowed to $107 billion from $125.62 billion.
The US Nonfarm Payrolls on Friday are expected to be a key driver of market movement, with the consensus at 80K and average hourly earnings seen up 0.3% on the month.
A firm wage print would extend the Greenback's recovery and leave the Kiwi squeezed from both directions.