New Zealand Dollar dragged lower on risk
Wednesday 20 November, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand Dollar advanced to 0.6437 overnight against the U.S Dollar testing these waters for the second straight day, unfortunately the moves were short-lived and didn’t have a difficult time reversing all gains within a few hours and opening this morning at 0.6402. Locally, we saw the release of New Zealand’s Credit Card Spending, the data revealed in October spending increased by 2.5% on a yearly basis and fell short of the market expectation for an increase of 5.5%. Looking ahead, the local calendar has nothing to report today. We would expect moves will be determined by the continued US-China dispute which has extended after U.S senate passed two bills to back protesters in Hong Kong that angered China and crushed any hopes of a partial trade deal between the two countries that have been at war from months. On the technical front, we expect to see near-term support at 0.6380 followed by 0.6360. On the upside, resistance is sitting at 0.6440.
Key MoversSterling is lower on the back of a stronger US dollar across the board, the GBP/USD has reversed all gains from earlier on in the week and has dropped from 1.2969 to 1.2904. The Euro another currency that relinquished all gains falling from 1.1097 down to 1.1052 following the ECB Monetary Policy Meeting Accounts. European Central Bank’s Luis de Guindos comments were interpreted that a cut to deposit rate is still on the cards next year.Meanwhile, in the US we saw a few macro releases, the Philadelphia Fed survey picked up a little in November rising to 10.4 from 5.6 in October which was well above market expectations. Also, the number of Americans claiming unemployment benefits were flat at 227k for the week, these numbers are still sitting at five-month highs.
- NZD/USD: 0.6380 - 0.6440 ▼
- NZD/EUR: 0.5740 - 0.5810 ▼
- GBP/NZD: 2.0000 - 2.0300 ▼
- NZD/AUD: 0.9380 - 0.9480 ▼
- NZD/CAD: 0.8440 - 0.8560 ▼