New Zealand Dollar unchanged and could react to Australian labour data
Thursday 1 January, 1970
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand Dollar remained relatively flat on Wednesday following over a 100-pip loss at the start of the week. The NZD/USD moved between a low of 0.6566 and a high of 0.6592 and it is quite clear the Kiwi is feeling the effects of the U.S China trade war with China being New Zealand’s largest trade partner. On the data front, the pair was little affected by Visitor Arrivals for the month of April which reported a decline of 3.1% making a fourth decline in the past five releases. Looking ahead, there is little on the domestic docket as far as macro releases go, interestingly if there is a sharp reaction to Australia’s labour force data, with the NZD/USD being closely correlated to the AUD/USD there could be some movement. From a technical viewpoint, support can be seen at 0.6500 and 0.6480, on the upside, resistance sits at 0.6620.
Key MoversThe focus was on US consumer inflation yesterday, CPI was weaker than expected at both the core and headline levels. CPI slowed to 0.1%, down from 0.3% in the previous release, which matched the estimate. The core reading posted a gain of 0.1% for a fourth straight month, shy of the forecast of 0.2%. This data reinforces the case among investors for the Fed to cut interest rates. EUR/USD slipped on Trumps threats of sanctions on Germany’s planned gas pipeline form Russia, the pair dropped from 1.3435 down to 1.1282.
- NZD/USD: 0.6540 - 0.6640 ▲
- NZD/EUR: 0.5790 - 0.5880 ▲
- NZD/GBP: 0.5140 - 0.5220 ▲
- NZD/AUD: 0.9450 - 0.9540 ▲
- NZD/CAD: 0.8730 - 0.8830 ▲