New Zealand dollar trades above 62 US cents

Daily Currency Update

The Kiwi dollar is slightly stronger this morning when valued against the Greenback. The Kiwi dollar continued its winning streak for the fifth successive day on the downbeat US Dollar. The NZD/USD pair traded above 62 US cents during the European hours on Friday. The US Dollar is now close to its weakest week since November on the back of dovish comments last week from the Federal Reserve which suggests that the NZD/USD pair could retest the five-month high at 0.6249 lined up with the 0.6250 major level. If the NZD/USD pair manages to surpass the resistance area, it might find support near 0.6300.
On the data front last week New Zealand's economy shrank in the third quarter of 2023. Statistics New Zealand revealed on Thursday that the nation’s Gross Domestic Product (GDP) for the third quarter (Q3) contracted 0.3% from the 0.5% expansion in the previous reading, below the market expectation of 0.2% rise. Additionally, the annual GDP came in at -0.6%, compared with the 1.5% growth in Q2 while below the market consensus of a 0.5% increase. Looking ahead this week and on Monday we will see the release of the Westpac Consumer Sentiment. On Wednesday we will see the release of the monthly Trade Balance figures and ANZ Business Confidence.