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NZD sees highest point in a month

Tuesday 24 December, 2019

Daily Currency Update

NZD - New Zealand DollarThe Kiwi continues to climb, confidently breaking through the resistance level of 0.6600 during yesterdays trading session, to open at 0.6635 this morning against the USD. Currently at a one month high, we can expect support levels of 0.6580 to hold during the quiet holiday season.Much of this can be owing to renewed optimism regarding the US-China trade war, helping the NZD gather strength as US President Donald Trump has advised they have achieved a breakthrough in the trade deal with China and will be signing it soon.

Key Movers

China has announced they will reduce tariffs on a range of over 850 products such as frozen pork to tech parts commencing from the 1st of January. The changes were in response to a slowing economy as Beijing looks to boost imports, and a truce with the US as President Trump advises they are close in a trade-deal with China.Over in Canada, their GDP data came back less than expected at -0.1% compared to it’s forecasted rate of 0.1% indicating contraction in the economy. This is the first month-to-month decline since February and the latest warning sign that the Canadian economy has stalled.We can expect a quiet holiday season with no major macroeconomic news being released until NYE with the US Chicago PMI. Showing the level of a diffusion index based on surveyed purchasing managers, it is a leading indicator of economic health.

Expected Ranges

  • NZD/AUD: 0.9495 - 0.9665 ▲
  • NZD/CAD: 0.8700 - 0.8825 ▲
  • NZD/EUR: 0.5905 - 0.6115 ▲
  • GBP/NZD: 1.9215 - 1.9880 ▼
  • NZD/USD: 0.6540 - 0.6735 ▲