New Zealand dollar trades below US$0.60
Daily Currency Update
The Kiwi dollar is slightly weaker this morning when valued against the Greenback. The NZD/USD pair retreated on Thursday from the weekly high 0.6029, hovering below the 0.6000 psychological level during the European session. The NZD/USD pair could find support at the nine-day Exponential Moving Average (EMA) at 0.5952, lined up with a major level at 0.5950. However, the New Zealand dollar (NZD) received upward support from China’s economic data, which improved the trade outlook in the country. Yesterday the Chinese government's injection of 1 trillion yuan in low-cost financing for the property sector is a strategic move to address concerns of a credit crunch. Initiatives of this scale can have ripple effects across global economies, including New Zealand. The NZD/USD is currently trading at 0.5969 at time of writing. Looking ahead today we will see the release of the Producer Price Index (PPI), which is a leading indicator of consumer inflation - when manufacturers pay more for goods, the higher costs are usually passed on to the consumer.Key Movers
In the US last night Initial Jobless Claims for the week into November 10th showed 231K new claims for unemployment benefits, nearly a two-year high for the figure. Markets were forecasting 220K, a tick above the previous week's 218K (revised from 217K). US Industrial Production declined in October by 0.6%, worse than the expected 0.1% contraction, eating away at the previous month's meager 0.1% (revised down from 0.3%). Looking ahead today in the US and we will see US Housing Starts and Building Permits for the month of October. Median market forecasts are expecting slight declines in both figures, with Housing Starts seen dipping from 1.358M to 1.35M; US Building Permits are forecast to decline from 1.471M to 1.45M.The pound sterling (GBP) was able to hold on to its earlier gains versus the US dollar (USD) on Thursday. On the UK data front we saw the latest UK inflation report revealed that consumer inflation dropped to 4.6%, down from 6.7%, the lowest since October 2021. Even though the Bank of England (BoE) has stressed rates need to be higher for longer, money market futures are not expecting more rate hikes. Looking ahead tonight UK Retail Sales are expected to print a recovery after plunging -0.9% in September monthly data. Annually, estimates are at -1.5% contraction, worse than the September data.
Expected Ranges
- NZD/USD: 0.5850 - 0.6050 ▼
- NZD/EUR: 0.5400 - 0.5600 ▼
- GBP/NZD: 2.0700 - 2.0900 ▲
- NZD/AUD: 1.0700 - 1.0900 ▼
- NZD/CAD: 0.8100 - 0.8300 ▼