Home Daily Commentaries New Zealand dollar holds above US$0.61

New Zealand dollar holds above US$0.61

Daily Currency Update

The New Zealand dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.6118 at the time of writing. The NZD/USD pair extends downside during the Asian session on Friday. The firmer Greenback and weaker New Zealand PMI data exert some selling pressure on the pair. New Zealand manufacturing has remained in contraction for 15 consecutive months, which undermines the New Zealand dollar (NZD). Early Friday, Business NZ showed that the nation’s Performance of Manufacturing Index (PMI) contracted to 47.2 in May from the previous reading of 48.9. ANZ analysts expect the weaker economic data would suggest the Reserve Bank of New Zealand (RBNZ) to cut the Official Cash Rate (OCR) sooner than previously signaled, with expectations for rate cuts starting in February 2025. Looking ahead this week on the data front and today we will see the release of the Business NZ Services Index a survey of purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. On Tuesday we will see the release of the Westpac Consumer Sentiment which is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. On Wednesday Statistics New Zealand will release the latest current account figures which are directly linked to currency demand. A rising surplus indicates that foreigners are buying more of the domestic currency to execute transactions in the country.  Finally, on Friday we will see the release of the quarterly Gross Domestic Product (GDP). It's the broadest measure of economic activity and the primary gauge of the economy's health.

Key Movers

In the US on Friday the US Producer Price Index (PPI) climbed 2.2% YoY in May, compared to the 2.3% rise in April, below the forecast of 2.5%. The core PPI figure rose 2.3% YoY in May, below the consensus and the previous reading of 2.4%, the US Bureau of Labor Statistics revealed on Thursday. Meanwhile, the number of Americans filing new claims for unemployment benefits for the week ending June 6 increased by 242K, the highest in ten months. This figure came above the market consensus of 225K and the previous week's reading of 229K.
The Euro slipped further into the low end on Friday, clipping into 1.0670 before recovering to the 1.0700 handle against the greenback during the US market session. Political pressure is weighing down the Euro after a wide shift in European voter sentiment tilted towards right-of-center political parties in European parliamentary elections. European Central Bank (ECB) officials have been working to reassure the market as the Euro has performed poorly this week compared to other major currencies. French President Emmanuel Macron has dissolved the French government and called for a snap election in an effort to counter the rise of right-wing contender Marine Le Pen, who achieved a surprising victory in the European parliamentary elections. The EUR/USD pair is currently trading at 1.0682 at the time of writing.

Expected Ranges

  • NZD/USD: 0.6000 - 0.6200 ▼
  • NZD/EUR: 0.5600 - 0.5800 ▼
  • GBP/NZD: 2.0500 - 2.0700 ▲
  • NZD/AUD: 1.0650 - 1.0850 ▲
  • NZD/CAD: 0.8300 - 0.8500 ▼

Written by

Brett Ottawa


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.