NZD post RBNZ recovery falters in face of stronger US data
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Daily Currency Update
The New Zealand dollar slipped through trade on Thursday, unable to keep up with the USD amid stronger than expected US retail sales and jobless claims data. With little of note on the domestic ticket, the NZD clawed its way back above US$0.60 through the domestic session and leading into the all-important US consumer pulse check. With Retail Sales outpacing expectations and fears for a US recession fading, the NZD failed to keep pace with the USD overnight and slid back below US$0.5980, marking session lows at US$0.5978, before finding support. Having edged toward US$0.61 leading into this week's RBNZ policy announcement, the NZD has since struggled to find support on moves approaching US$0.6020 and our attentions turn now to domestic manufacturing PMI data ahead of UK retail sales and US consumer sentiment for direction into the weekly close.Key Movers
The US dollar advanced through Thursday, buoyed by stronger than expected retail sales and a dip in jobless claims. The positive macro agenda helped ease fears for recession and spurred further improvement in the risk narrative, driving US equities higher. Treasury yields gained, as market pricing for a 25-point cut come September gathered momentum over calls for a 50 point adjustment. The DXY dollar index advanced 0.4%, while the euro, CHF and JPY all slid. The risk positive backdrop and uptick in yields hurt the CHF and JPY, with both underperforming all other major counterparts. In other news, the GBP outperformed on the day, up a quarter of one percent amid steady GDP data.Our attentions turn now to commentary from RBA Governor Michelle Bullock, while UK retail sales and US consumer sentiment numbers dominate the offshore ticket.
Expected Ranges
- NZD/USD: 0.5950 - 0.6030 ▼
- NZD/EUR: 0.5400 - 0.5500 ▲
- GBP/NZD: 2.1300 - 2.1600 ▲
- NZD/AUD: 0.9020 - 0.9120 ▼
- NZD/CAD: 0.8180 - 0.8280 ▼