New Zealand dollar falls below US$0.56
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Daily Currency Update
The New Zealand dollar is weaker this morning when valued against the Greenback currently trading at 0.5576 at time of writing. TNZD/USD continues its losing streak that began on February 21, hovering around 0.5600 during early European trading on Friday. The New Zealand dollar (NZD) faces downward pressure despite a private survey indicating a slight rise in consumer confidence for February, as concerns over global trade tensions and domestic monetary policy persist. New Zealand Consumer confidence rose marginally in February, but many households are yet to feel the impact of an improving economy, according to ANZ research. The ANZ-Roy Morgan Consumer Confidence Index rose 0.6 points to 96.6 in February. The proportion of households that think it’s a good time to buy a major house item, seen as the best retail indicator, lifted 1 point to -15. The RBNZ lowered its track for the Official Cash Rate (OCR) earlier this month, effectively signalling more cuts sooner. The OCR track implied a 25bp cut in both April and May to 3.25%. Looking ahead this week and today Statistics New Zealand will release the quarterly Overseas Trade Index which calculates the volume of imports that can be purchased with an equal volume of exports. On Tuesday we will see the release of the latest monthly Building Consents.Key Movers
The US dollar Index (DXY), which measures the value of the US dollar against a basket of six major currencies, remains firm above 107.00 on Friday after January’s Personal Consumption Expenditures (PCE) inflation data came in line with forecasts, easing concerns over unexpected inflation spikes. The US Core Personal Consumption Expenditures Price Index, considered the Federal Reserve’s (Fed) key inflation measure, rose by 0.3% in January (month-over-month), matching expectations, as Fed policymakers weigh the implications of ongoing trade disputes. President Trump’s new 10% tariff threat on Chinese goods compounds existing duties, fuelling fears of further retaliation. Tariffs for Mexico and Canadian goods are set to take place as soon as next week. Gold extended its losses on Friday, down more than 1% and over 3% in the week. The XAU/USD trades at $2,845 after reaching a daily peak of $2,885. On Wall Street the S&P 500 climbed 1.59% to end the session at 5,954.50 points. The Nasdaq gained 1.63% to 18,847.28 points, while the Dow Jones Industrial Average rose 1.39% to 43,840.91 points.Expected Ranges
- NZD/USD: 0.5450 - 0.5650 ▼
- NZD/EUR: 0.5250 - 0.5450 ▼
- GBP/NZD: 2.2250 - 2.2450 ▲
- NZD/AUD: 1.0900 - 1.1100 ▼
- NZD/CAD: 0.7950 - 0.8150 ▼