Kiwi tumbles through 0.65 as risk sentiment sours and GDP print looms
Monday 17 June, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand dollar fell through trade on Friday, capping a week-long depreciation with a break below 0.65. Weak risk sentiment and mounting expectations the RBNZ will loosen monetary policy nearer 1% moving through the second half of the year. Much likes its antipodean counterpart the NZD has suffered through the last 2 months as deteriorating domestic economic performance, escalating trade tensions and diminishing global growth prospects dampen demand for the commodity led unit. Attentions now turn to Wednesday’s FOMC meeting minutes and Thursday’s Domestic Q1 GDP print for direction through the week ahead with support at 0.65 broken a test of 0.6480 could prompt a break nearer 0.64 and 0.63.
Key MoversThe US dollar rallied through trade on Friday, advancing to a 2-week high following moderate retail sales data. Consumer spending rose half a percent in May, largely meeting analyst expectations, while data for April was revised upward having originally shown a two tenths contraction. The upbeat read assuaged investor fears the pace of economic growth is decelerating at an alarming rate, easing some of the pressure on the Federal Reserve to reverse its recent monetary policy tightening. Sterling marked a sixth consecutive week of losses when valued against the Euro as pro-Brexit conservative Boris Johnson firms as the favourite to replace Theresa May as Prime Minister. Concerns Johnson will lead the UK out of Europe without a deal in place are weighing heavy on the Pound, forcing Cable nearer through 1.26 to 1.2571.
- NZD/USD: 0.6430 - 0.6580 ▼
- NZD/EUR: 0.5730 - 0.5870 ▼
- GBP/NZD: 1.9110 - 1.9480 ▲
- NZD/AUD: 0.9380 - 0.9510 ▼
- NZD/CAD: 0.8680 - 0.8780 ▼