NZD/USD bulls are pushing up against the Ukraine crisis risks

• NZD/USD holds positive ground despite risk-off sentiment. 
• The Ukraine crisis remains in the driving seat with an eye kept on central banks. 

NZD/USD is trading in the bullish territory on Thursday following a strong performance on Wednesday. The currency rose from a low of 0.6927 to a high of 0.6998. The bulls were out in force as the euro rallied and risk assets jumped on the cautious optimistic headlines surrounding the Ukraine & Russian peace talks. 

However, the markets were whipsawed by headlines to the contrary as well as by sentiment related to central bank outlooks. nevertheless, the NZD managed to stay on its flight path and ended the day higher. ''The Kiwi is higher again this morning, knocking on the door of 70 cents as it takes a lead from the higher EUR, which has, in turn, risen as high inflation there looks like it will force the ECB’s erstwhile dovish hand,'' analysts at ANZ Bank explained.

''The AUD is also higher, but to a lesser extent, and that’s seen a bounce in NZD/AUD (see below), but it also neatly demonstrates how the Kiwi has seemingly been able to latch on to any positivity of late. But of course when that happens, fickle markets can be quick to turn. Still, we think the re-awakening of the EUR and AUD will be key to how the NZD performs in the coming weeks, and the writing seems to be on the wall on that score given market expectations for hikes and recent inflation reads.''

Ukraine peace talks, lack of progress

Russian forces bombarded the outskirts of Kyiv on Wednesday and this came following the warnings from the US administration that they were sceptical of Russia’s vow to curtail its military assault on Ukraine. 

Additionally, both the Ukraine Defence Ministry and the Polish Deputy Prime Minister crossed the wires and stated that Russia is preparing for a new attack in Ukraine. All indications are that we are facing a long war, Aljazeera Tweeted, quoting the Polish PM. A Ukraine Defence Ministry spokesperson expressed a view that the Russian military continues to aim to take control of Mariupol, a strategic city in the east, saying that a major withdrawal is not taking place, and Russia is ready to resume attacks. Talks will resume April 1.