New Zealand Dollar unable to hold above 63c vs the Greenback
Tuesday 8 October, 2019
Daily Currency UpdateNZD - New Zealand DollarIn the absence of any local data on Monday the New Zealand dollar held above the 63c handle vs the Greenback and flirted within a tight range moving between a low of 0.6301 and a high of 0.6321. Unfortunately as the European and North American Markets opened the NZD/USD pair was unable to hold on and edged lower towards 0.6280 on the back of a stronger US Dollar. Traders are also sitting on the sidelines before talks between the US and China kick off again this Thursday between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington. The 15-month trade war has shown no signs to date of either parties coming to any agreement or conclusion and Trump has said next weeks scheduled tariff increase from 25% to 30% will take effect if no progress is made. Looking ahead, a very quiet week for New Zealand on the macroeconomic front with no scheduled releases for today. From a technical perspective, the NZD/USD is currently trading at 0.6289, we expect support to hold around 0.6270 and 0.6250. On the upside, resistance sits at 0.6320 and 0.6340.
Key MoversThe US Dollar Index which measures the strength of the Greenback against a basket of six major currencies closed the session higher, markets are on edge and risk aversion reared its head with the upcoming new round of trade talks between the US and China. EUR/USD is down at 1.0969 as a slump in German factory orders for the month of August has increased some concerns of a recession. German Factory Orders fell 0.6% which was twice as much as forecasted. Over in the UK, BRC Retail Sales reported a drop of 1.3% in sales in September over the same period last year which sets a new record low for that month. Several major retailers have reported that Brexit uncertainty has affected their customers with confidence low. GBP/USD currently trading at 1.2293.
- NZD/USD: 0.6220 - 0.6360 ▼
- NZD/AUD: 0.9320 - 0.9370 ▲
- GBP/NZD: 1.9410 - 1.9750 ▲
- NZD/EUR: 0.5690 - 0.5750 ▼
- NZD/CAD: 0.8240 - 0.8440 ▼