Kiwi dollar finds support on improved market sentiment
Thursday 16 May, 2019
Daily Currency UpdateThe New Zealand dollar is weaker this morning when valued against the Greenback albeit market sentiment has improved overnight after reports that Trump would delay a decision on auto tariffs by up to six months. The kiwi traded 0.2% lower yesterday reaching a low of 0.6550. With little of note on the domestic docket today attentions remain with trade and headline updates as the key driver of direction. Looking ahead and on Friday we will see the release of Business NZ Manufacturing Index and Producer Price Index (PPI) which is a leading indicator of consumer Inflation.
From a technical perspective, the NZD/USD pair is currently trading at 0.6564. We continue to expect support to hold on moves approaching 0.6540 while now any upward push will likely meet resistance around 0.6580. The New Zealand dollar is also trading at 94.72 Australian cents from 94.67, at 51.13 British pence from 50.92, and at 58.56 euro cents from 58.63.
Key MoversThe U.S. dollar lost ground in early trade on Wednesday after the release of weaker than expected US data. April Retail Sales were down monthly basis by 0.2. The core reading, Retail Sales Control Group, resulted unchanged vs. a 0.4% advance expected. Also we saw the release of US Industrial Production which also fell by 0.5% MoM in April. The Greenback did recover some of those early losses later in the session after the US Government announced it would delay tariffs on car imports for six months, pushing equities higher in detriment of safe-haven assets.
The Pound Sterling yesterday fell to a fresh low of 1.2825, its lowest since February, against the Greenback on the back of continued Brexit related news. UK Prime Minister Theresa May plans to pass her Brexit deal through the Parliament in the first week of June albeit she is still struggling to build a majority. A quiet day ahead in the UK with no scheduled macroeconomic releases.
- NZD/AUD: 0.9350 - 0.9550 ▼
- NZD/EUR: 0.5750 - 0.5950 ▼
- NZD/GBP: 0.5000 - 0.5200 ▲
- NZD/USD: 0.6450 - 0.6650 ▼
- NZD/CAD: 0.8700 - 0.8900 ▼