Kiwi dollar at a five-month high
Thursday 2 January, 2020
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand dollar is stronger this morning when valued against the Greenback extended its recent gains as commodity currencies rallied on the prospect of a US-China trade deal next week and as year-end profit-taking saw the US dollar sold-off. On Tuesday the Kiwi dollar was given a boost on the back of upbeat Chinese data, China is the biggest trading partner of New Zealand, as the official NBS Manufacturing PMI beat expectations in December by printing at 50.2. The Non-Manufacturing PMI, however, missed the market’s expected slide to 53.6 and came in at 53.5.On the release front there are no scheduled releases today. From a technical perspective, the NZD/USD pair is currently trading at 0.6725. We continue to expect support to hold on moves approaching 0.6690 while now any upward push will likely meet resistance around 0.6750.
Key MoversThe Pound Sterling hit a two-week high against the U.S dollar, a daily high of 1.3284, after UK PM Johnson’s victory on the general election, and the 1.2904 low hit after Johnson decided to limit the transition period to December 2020. The possibility of a “no-deal” Brexit at the end of 2020 is still weighing on the pound. On the release front today the UK will see the release this Thursday of the final Markit Manufacturing PMI for December, foreseen at 47.6 vs. the previous estimate of 47.4. From a technical perspective, the GBP/USD pair is currently trading at 1.3252. We continue to expect support to hold on moves approaching 1.3230 while now any upward push will likely meet resistance around 1.3285.
- NZD/USD: 0.6650 - 0.6850 ▲
- NZD/AUD: 0.9500 - 0.9700 ▼
- GBP/NZD: 1.9600 - 1.9800 ▼
- NZD/EUR: 0.5900 - 0.6100 ▲
- NZD/CAD: 0.8650 - 0.8850 ▲