NZD notable underperformer as US labour data looms large
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Daily Currency Update
The New Zealand dollar underperformed on Monday, giving up ground to the USD and other key majors amid an absence of headline news flow and tier one macro data. The Kiwi was confined to a narrow range against the USD tracking between US$0.6220 and US$0.6250. While the AUD, euro and GBP all tracked higher against the USD, the NZD closed two tenths of a per cent lower, exacerbating losses against key majors.Having marked 10-week highs near AU$0.9240 the NZD is now trading back below US$0.92, tracking just above US$0.9170, while also giving up 0.5650 against the euro and 0.4750 against the GBP.
Our attentions turn now to US ISM manufacturing data, with particular focus afforded to the employment sub index. With US non-farm payrolls casting a shadow across the week’s macro docket any labour market insights are likely to drive volatility and price action, especially as liquidity levels are restored as investors return from the US Labour Day long weekend.
Key Movers
With US markets closed in observance of the Labour Day long weekend, liquidity levels were significantly thinned and the USD index largely unchanged as the world's base currency enjoyed mixed fortunes across a basket of majors. The euro, GBP and AUD all advanced against the US dollar, while the NZD and JPY were notable underperformers. German Bonds rose for a 3rd consecutive day, UK gilts edged higher while European equities added support. The euro pushed back above 1.1050 while the GBP toyed with a break above 1.3150.Our attentions turn now to US ISM manufacturing data, ahead of jobless claims Wednesday and US non-farm payrolls Friday as key drivers of direction.
Expected Ranges
- NZD/USD: 0.6180 - 0.6250 ▼
- NZD/EUR: 0.5580 - 0.5680 ▼
- GBP/NZD: 2.1000 - 2.1250 ▲
- NZD/AUD: 0.9130 - 0.9240 ▼
- NZD/CAD: 0.8350 - 0.8450 ▼