Home Daily Commentaries NZD dips as ANZ NZ business survey shows further pessimism

NZD dips as ANZ NZ business survey shows further pessimism

Daily Currency Update

NZD - New Zealand DollarThe ANZ New Zealand business outlook survey data released yesterday showed a jump in 13 points, to -13.2. While this is the highest read since October 2017, respondents are still expecting business conditions to deteriorate in the upcoming year. The quarterly NZ GDP data release tomorrow morning is expected to have a major impact on the Kiwi. Showing the change in the inflation-adjusted value of all goods and services, this is the broadest measure of economic activity and the primary gauge of the economy’s health. The Kiwi opened at 0.6569 against the USD this morning.

Key Movers

Brexit remains at the top of the headlines as fear is returning of a possible no-deal Brexit at the end of next year. Prime Minister Boris Johnson will use his new control of parliament to rule out any extension to the Brexit period beyond 2020, but European leaders have said a deadline of December 2020 would be too tight to negotiate a deal and the proposal could lead to a no-deal outcome. In the US, flash manufacturing data came back lower than expected at 52.5 compared to its forecasted rate of 52.6. Measuring a level of a diffusion index based on surveyed purchasing managers, the lower rate indicates a contraction in the economy. In terms of other major macroeconomic news, we should see some movement tomorrow night when the UK releases their monthly CPI data. Considered the UK’s most important inflation data, it is used as the central bank’s inflation target.

Expected Ranges

  • NZD/AUD: 0.9490 - 0.9670 ▲
  • NZD/CAD: 0.8560 - 0.8710 ▲
  • NZD/EUR: 0.5815 - 0.5995 ▲
  • GBP/NZD: 1.9605 - 2.0365 ▼
  • NZD/USD: 0.6480 - 0.6675 ▲