Home Daily Commentaries New Zealand Dollar keeps recovery moves around mid 66’s

New Zealand Dollar keeps recovery moves around mid 66’s

Daily Currency Update

The New Zealand Dollar traded within a tight 40-pip range on Friday and closed the session lower against its US counterpart. With the Kiwi unable to focus on anything domestic, risk aversion made it difficult for the NZD/USD to find demand. Following news President Trump had contracted COVID-19 investors turned towards safe-haven assets and took the pair to an eventual low of 0.6613. Better than expected US Nonfarm Payroll numbers also put pressure on pair from make any sold gain and closed the week at 0.6632.
On the data front, the macro-economic calendar is pretty light until Thursday’s CPI. Pre-voting also starts for the country’s October 17th election. Market has priced in Labour clean sweep with movement in the polls that threatens unstable coalitions weighing on the NZ Dollar. The NZD/USD opens this morning at 0.6632 with support sitting around 0.6610 followed by 0.6580. On the upside, resistance sits at 0.6650 and 0.6700.

Key Movers

The US Dollar Index which measures the strength of the Greenback against a basket of six major currencies was slightly up on Friday with September’s Nonfarm Payrolls reported adding 661k jobs to the economy vs. the 850k forecasted. The unemployment rate eased from to 7.9% from 8.4%. While millions more remain unemployed, September’s activity means that about 12 million jobs have been recovered since the mid-March economic shutdown that saw about 22 million layoffs.
Over in Europe, the EUR/USD closed lower at 1.1713 being one of the worst performers of the G10 currencies and the GBP/USD saw a brief rally after the news that UK Prime Minister Boris Johnson and EU’s President Ursula Gertrud Von Der Leyen are set to hold high level talks on Saturday in a bid to break the deadlock.

Expected Ranges

  • NZD/USD: 0.6580 - 0.6700 ▲
  • NZD/AUD: 0.9220 - 0.9330 ▲
  • GBP/NZD: 1.9350 - 1.9650 ▼
  • NZD/EUR: 0.5600 - 0.5700 ▲
  • NZD/CAD: 0.8780 - 0.8880 ▲