Kiwi dollar weaker ahead of tomorrow’s inflation report
Tuesday 15 October, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand dollar is weaker this morning when valued against the Greenback as the market positioned itself for Wednesday's release of the September quarter inflation figures. Market expectations Wednesday’s CPI is likely to be on the weaker side. Economists expect the consumers price index rose 0.6 percent in the latest quarter, taking the annual rate to 1.4 percent, down from 1.7 percent in the June quarter. The Reserve Bank of New Zealand targets 2 percent annual inflation and is expected to cut its official cash rate again in November. Looking ahead today in New Zealand, a quiet day ahead, with the only scheduled release monthly Visitor Arrivals. From a technical perspective, the NZD/USD pair is currently trading at 0.6294. We continue to expect support to hold on moves approaching 0.6280 while now any upward push will likely meet resistance around 0.6340.
Key MoversThe Greenback rose on Monday, recovering some ground against most major rivals, as optimism waned about a trade deal between the United States and China, and investors fretted about the ongoing Britain’s exit from the European Union. Regarding US-China trade tensions, both countries seem to have reached another truce and to be heading into a deal, although negotiations are set to continue after this “phase one” announced by US President Donald Trump. The Pound sterling is weaker this morning when valued against the Greenback finishing the day at around 1.2560, having fallen to a daily low of 1.2515. Brexit-related headlines kept weighing on sterling reports suggested that EU representatives fear that British Prime Minister Boris Johnson won’t be able to pass Brexit in Parliament (October, 31). On the data front today in the UK we will see the release of its latest employment data. The ILO Unemployment Rate is seen stable at 3.8%, while the September Claimant Count Change is expected at 27.9K vs the previous 28.2K. From a technical perspective, the GBP/USD pair is currently trading at 1.2568. We continue to expect support to hold on moves approaching 1.2515 while now any upward push will likely meet resistance around 1.2600.
- NZD/USD: 0.6200 - 0.6400 ▼
- NZD/AUD: 0.9200 - 0.9400 ▼
- GBP/NZD: 1.9450 - 2.0250 ▲
- NZD/EUR: 0.5600 - 0.5800 ▼
- NZD/CAD: 0.8250 - 0.8450 ▼