Home Daily Commentaries New Zealand dollar trades above US$0.61

New Zealand dollar trades above US$0.61

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Friday 8 March, 2024

Daily Currency Update

The New Zealand dollar is stronger this morning when valued against the Greenback, currently trading at 0.6172 at time of writing. Holding above 0.6140 is important to the continuation of the expected rise, as breaking it will put the price under new negative pressure that targets testing 0.6070 areas before any new positive attempt. The Kiwi dollar continues to advance for a second consecutive session on Thursday, largely driven by weakness in the Greenback amid improved risk appetite. Federal Reserve Chair Jerome Powell indicated that the central bank could initiate rate cuts at some point in 2024 during his testimony before the House Financial Services Committee. On the local front yesterday the ASB released its Housing Confidence Survey, which found price expectations are at their highest in two and a half years. The survey showed house price expectations continue to increase, with a net 51 percent of New Zealanders expecting them to rise to the highest net reading recorded since October 2021. The data from the survey showed house price expectations are on the up, but annual price growth remains at a muted 2.2 percent. Aucklanders are the most confident the tide has turned on house prices, with 56 percent of people surveyed saying house prices will increase. There are no scheduled releases today.

Key Movers

In the US, Federal Reserve Chair Jerome Powell told the House Financial Services Committee on Wednesday that incoming data will determine when they will start reducing the policy rate and repeated that they would like to have greater confidence inflation will move sustainably toward 2% before taking action. Powell in his prepared remarks to the House panel said rate reductions will "likely be appropriate" later this year "if the economy evolves broadly as expected" and once officials gain more confidence in inflation's steady decline. Though nothing is guaranteed and progress on inflation "is not assured," he regarded the economy as clear of immediate recession risks, with a low 3.7% unemployment rate and broad growth likely to continue, and an expectation that inflation will remain in decline. Looking ahead tonight and all eyes will be on the latest US employment report. Economists expect another round of solid jobs numbers, which would reaffirm that the labor market remains in good shape. Some early indicators pointed to a slowdown in employment growth in February.

Expected Ranges

  • NZD/USD: 0.6050 - 0.6250 ▲
  • NZD/EUR: 0.5550 - 0.5750 ▲
  • GBP/NZD: 2.0650 - 2.0850 ▼
  • NZD/AUD: 0.9230 - 0.9430 ▼
  • NZD/CAD: 0.8200 - 0.8400 ▲

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.