Home Daily Commentaries NZD maintains momentum consolidating push above 0.6850

NZD maintains momentum consolidating push above 0.6850

Daily Currency Update

The New Zealand maintained its upward momentum through trade on Thursday, consolidating gains above 0.6850 amid broader USD softness. Having tracked sideways through the local session, the NZD pushed through resistance at 0.6850 shortly after the domestic close, extending toward intraday highs at 0.6890. Moving into last Friday, analysts were keenly attuned to US non-farm Payroll data and this Wednesday’s CPI inflation print. Neither risk event offered any real surprises and failed to alter expectations for FOMC monetary policy action. With both items now behind us and a clear roadmap to monetary policy normalisation now available, investors appear set in correcting near term USD values and capitalising on profit taking opportunities. Having staved off a break below supports at 0.6730 and 0.67, there is scope to suggest the NZD could now benefit from an accelerated USD correction.

Key Movers

The US dollar came under added downward pressure through trade on Thursday as investors continued to capitalise on recent gains, jumping on profit taking opportunities. With key risk events now behind us and little changed in the roadmap to monetary policy normalisation, markets have moved off the world’s base currency having priced in positive data points. The DXY dollar index fell through 95, marking intraday lows at 94.66 before edging marginally higher into the daily close. The euro has been a primary beneficiary of this weeks USD correction pushing back above 1.1450 and closing in on resistance at 1.1480/1.15, while the Great British pound held onto gains above 1.37 and the yen pushed the dollar toward supports at 114. Attentions turn now to US retail sales and second tier macroeconomic data for direction into the weekend. A DXY close below yesterday's low could signal a technical shift in momentum. We are keenly attuned to market action into the close.

Expected Ranges

  • NZD/USD: 0.6780 - 0.6890 ▲
  • NZD/EUR: 0.5950 - 0.6020 ▲
  • GBP/NZD: 1.9890 - 2.0050 ▼
  • NZD/AUD: 0.9390 - 0.9450 ▲
  • NZD/CAD: 0.8550 - 0.8620 ▲