Against the broader context of USD strength, the Kiwi has floundered, opening this morning around the 0.6860 mark. Down more than 7% for the month against the Greenback, the embattled Kiwi again listed amongst the worst performers with little direction on the domestic calendar to drive excitement.
The New Zealand Dollar initially started the previous day in a holding pattern, trading within a tight range of 0.6893 to 0.6921 and looking to claw back losses on the release of offshore Chinese data. The catalyst, however, was found during the American session rather than Asian with the drop and volatility triggered by strong US retail data and rising 10-year treasury yields in the States.
The Aussie cross, unfortunately, provided little respite for the New Zealand Dollar, also registering a 3% loss in the space of a month. Across the Tasman, all eyes turn to Australia’s Quarterly Wage Price Index and Unemployment Rate for direction on the cross rate.
With little on the horizon on the domestic front today, New Zealanders turn to Thursday’s Annual Budget release for further direction over the week.