New Zealand Dollar touches four-week highs but fails to break 0.6440 against the U.S Dollar
Monday 2 December, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand Dollar managed to gain some traction against the US Dollar on Friday during the Asian and early European session reaching tops of 0.6438. The brief rally supported by subdued US demand and a slight improvement in risk sentiment saw the NZD/USD pair touch four-week highs. Unfortunately, move was short-lived with the pair falling back towards the 0.6410 level. Meanwhile, Stats NZ released Building Consents figures which showed the number of new stand-alone houses consented fell a seasonally adjusted 1.1 percent, following a 7.4 percent rise in September. Looking ahead, it is a quiet week for macroeconomic releases which means the Kiwi will be in the hands of market risk sentiment at least until Thursday where the RBNZ Governor will be speaking at a press conference about decisions from the bank capital review. The NZD/USD pair opens this morning at 0.6417, we see initial support at 0.6395 followed by 0.6360. On the upside, the Kiwi face near term resistance at 0.6440 followed by 0.6465.
Key MoversThe US Dollar Index which measures the Greenbacks strength against a basket of six major currencies was steady on Friday in holiday-thinned trade after Thursdays Thanksgiving, the DXY closed the week at 98.28. The GBP/USD inched up and closed the week at 1.2942, for most of November, the pair has been holding above the 23.6% retracement of the October rally at around 1.2820, although below the mentioned high, and needs to break one of those to find directional strength. With the UK election just 10 days away the Conservative Party's lead over Labour has dropped slightly. The Tories have experienced a drop of one point to 46%, while Labour has gained three points to 31%, the Liberal Democrats are up one point to 13%, while the Brexit Party is down one point to 2% according a local UK survey.
- NZD/USD: 0.6360 - 0.6460 ▼
- NZD/AUD: 0.9430 - 0.9530 ▲
- GBP/NZD: 1.9960 - 2.0280 ▲
- NZD/EUR: 0.5790 - 0.5860 ▼
- NZD/CAD: 0.8500 - 0.8550 ▼