NZD/USD is perched around the highs of the day despite Ukraine risks

• NZD/USD is firm in the NY session holding in bullish territory. 
• Commodity currencies benefit from prospects of higher prices. 

At 0.6764, NZD/USD is 0.33% is higher having travelled between a low of 0.6664 and 0.6777, recovering firmly into resistance at the highs on the coattails of the Australian dollar. 

''The Kiwi is higher this morning, having eventually bounced after yesterday’s dip on the weekly re-open. While volatility was seen, it exhibited almost straight-line performance as it put on just under 1 cent between the NZ close and the early hours of this morning, after which it has corrected a touch,'' analysts at ANZ Bank explained. 

As a matter of explanation for the strength in the kiwi, the analysts at ANZ Bank noted that ''the devastating Ukraine conflict remains front and centre and while somewhat convoluted, the rebound looks built on the idea that geopolitical risks might temper central bank enthusiasm for hikes, which has, in turn, helped cushion sagging risk appetite.''

''We expect more volatility as markets juggle downside risks to sentiment and upside risks to inflation, and see less of an obvious immediate trend.''

Additionally, Russia’s status as a large commodity exporter means that the threat of supply disruptions of oil, gas and various agricultural commodities has been amplified. This too could be supporting the commodity currencies as investors bet on inflation and seek out a hedge.