Kiwi holds against the USD at 0.6600 floor
Monday 2 November, 2020
Daily Currency UpdateThe NZD saw a dip against the USD throughout the week, dropping below the 0.6600 floor on Thursday before rebounding back to hold steady and open this morning at 0.6615. The Kiwi saw heavy fluctuation this week due to a stronger Greenback and weak data from the ANZ Business Confidence. In the upcoming week we can expect to see some major volatility with the US Presidential Election happening on Wednesday, as well as Statistics New Zealand releasing their unemployment data the same data in the morning. Although considered a lagging indicator, unemployment data is an important signal of overall economic health and tends to create hefty market impacts.
Key MoversCanadian GDP data came back higher than it’s expected forecast of 0.9%, showing that it grew 1.2% following a 3.1% increase in July. This is the fourth consecutive monthly increase since the steep drop in March and April which bodes well for the Canadian economy. Over the weekend, the US Federal Reserve announced that they will lower the minimum loan level in their small business lending program from $250,000 to $100,000. Created to help small and medium sized businesses get through the COVID-19 pandemic, the reduction in loan size is an effort to broaden the appeal of the sparsely used facility. It will be a big upcoming week for the USD with several key events coming up, the most prominent being the US Presidential Election on Wednesday. While there is no guess how the dollar and equity markets will react to either a Biden or Trump win, many traders are expecting further major volatility. We will also see US ISM Manufacturing PMI Data released on Tuesday and unemployment data after Friday midnight.
- NZD/AUD: 0.9315 - 0.9530 ▲
- NZD/CAD: 0.8705 - 0.8965 ▲
- NZD/EUR: 0.5570 - 0.5825 ▲
- GBP/NZD: 1.9050 - 2.010 ▼
- NZD/USD: 0.6475 - 0.6790 ▼