New Zealand dollar continues to trade below US$0.60
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Daily Currency Update
The New Zealand dollar is weaker this morning when valued against the Greenback currently trading at US$0.5965 at the time of writing. The NZD/USD pair steadied near US$0.5980 during the Asian session on Tuesday after two days of losses. However, downside risks for the New Zealand Dollar remain as the Reserve Bank of New Zealand (RBNZ) is expected to deliver another 50-basis-point rate cut in its final policy meeting of the year in November, with markets even considering the possibility of a 75-basis-point cut. Instead of continuing to decline, the NZD is more likely to trade sideways between US$0.5965 and US$0.6005. On the local front for the rest of this week, all eyes will be on Thursday's ANZ Business Confidence which is a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. On Friday Statistics New Zealand will release the latest monthly building consents.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, extended gains on Tuesday, hitting a three-month high at 104.55. Despite a slight dip in September JOLTS Job Openings, the US labor market remains robust, as indicated by steady hiring and separation rates. US JOLTS Job Openings fell to 7.44 million in September from a revised-down of 7.861 million in August and below estimates of 7.99 million, according to data from the US Bureau of Labor Statistics (BLS). Gold breaks out of the top of its mini range, which stretches from a low of $2,708 to an all-time high of $2,758. US stocks opened Tuesday's session lower with the Dow Jones Industrial Average (DJI) leading losses as it dipped 0.4%. The tech-heavy Nasdaq Composite (IXIC) and S&P 500 (GSPC) are looking ahead to this week's Big Tech earnings as Alphabet (GOOG, GOOGL) is the next Magnificent Seven stock to report results after the market close. The key economic data releases, including ISM Manufacturing PMI and Nonfarm Payrolls (NFP), are expected this week. The outcome of these releases will be crucial in determining the index's trajectory. The USD remains supported by a resilient economy, but headwinds include Fed caution on inflation and market expectations for rate cuts.Expected Ranges
- NZD/USD: 0.5850 - 0.6050 ▼
- NZD/EUR: 0.5400 - 0.5600 ▼
- GBP/NZD: 2.1650 - 2.1850 ▼
- NZD/AUD: 1.0850 - 1.1050 ▲
- NZD/CAD: 0.8200 - 0.8400 ▼