Home Daily Commentaries New Zealand dollar falls below 63 US cents 

New Zealand dollar falls below 63 US cents 

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Thursday 26 September, 2024

Daily Currency Update

The New Zealand dollar is weaker this morning when valued against the Greenback, currently trading at US$0.6258 at time of writing. On Wednesday, the NZDUSD pair encountered selling pressure, declining by 1.20%. This reversal halted a five-day winning streak and marked a retreat from multi-month highs reached on Tuesday. Despite the pullback, the NZDUSD pair maintains a strongly bullish outlook. On the upside, resistance levels to watch include US$0.6300, US$0.6350, and US$0.6400. If the pair fails to jump back above US$0.6300, it could experience a deeper correction, probably toward US$0.6200. The upside of the New Zealand dollar could be attributed to a stronger outlook for foreign currency inflows amid fresh monetary stimulus by New Zealand’s largest export partner, China. Earlier this week, the People's Bank of China (PBOC) Governor Pan Gongsheng announced that China will reduce the reserve requirement ratio (RRR) by 50 basis points. Govenor Gongsheng also noted that the central bank would lower the 7-day repo rate from 1.7% to 1.5%, and reduce the down payment for second homes from 25% to 15%.

Key Movers

The US dollar Index (DXY), which measures the value of the USD against a basket of currencies, whipsaws in a volatile session on Wednesday, hovering around a 14-month low due to intensifying recession fears. All eyes will be on Friday’s Personal Consumption Expenditures (PCE) figures from August. Core PCE is expected to remain unchanged at 0.2% month-on-month, while headline PCE may ease to 0.1% month-on-month versus the 0.2% prior. Components in the Consumer Price Index (CPI) and Producer Price Index (PPI) data that feed into PCE have also suggested broad pricing pressures under control. Gold price remains steadily above $2,650 for the second straight session on Wednesday as traders increased the odds for another big interest rate cut by the Federal Reserve (Fed) at the upcoming November meeting. Adding to that, high US Treasury yields kept the XAUUSD from rising further, mostly trading near $2,660. Bullion has risen over 29% so far in 2024, with gains attributed to central bank easing and geopolitical issues.

Expected Ranges

  • NZD/USD: 0.6150 - 0.6350 ▼
  • NZD/EUR: 0.5500 - 0.5700 ▼
  • GBP/NZD: 2.1100 - 2.1300 ▲
  • NZD/AUD: 1.0750 - 1.0950 ▼
  • NZD/CAD: 0.8350 - 0.8550 ▼

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.