Kiwi falls 0.3% ahead of pivotal Fed meeting
Wednesday 31 July, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand Dollar fell 0.3% over the last 24 hours to open this morning at 0.6613. The poor run of form means the Kiwi has entered its fourth consecutive decline and its seventh fall in eight sessions since it reached a three and a half month high earlier in the month. Domestically, there wasn’t too much to digest for the Kiwi with the falls being driven by off-shore movements. Across the Tasman, the Aussie fell 0.4% with the Kiwi following its largest trading partner lower. Adding fuel to the fire was another series of Trump Tweets accusing China of “ripping off” the United States by failing to purchase enough agricultural goods. The Tweets further weakened the Kiwi’s position as the US-China Trade War continues to look precarious.Wednesday packs a lot more excitement for traders with the ANZ business survey, Australian CPI and Chinese PMI both set for release. Nevertheless, the hard-hitting data will come through overnight with US Non-farm employment and the US Federal Reserve funds rate both set for release. Of paramount importance will be the Federal Reserve as they look to cut the fund rate for the first time since 2008. The market has 100% priced in a 25BP cut with the accompanying commentary to prove pivotal for traders.
Key MoversThe Great British Pound continued its woeful week by plummeting a further 0.5% during Asian trading hours. Opening this morning at 1.2155, the Sterling broke below 1.22 for the first time since March 2017. The Pound did manage to stabilise somewhat although the underlying drivers of the decline continue to weigh on the Sterling with a no-deal Brexit and new elections playing havoc with financial markets.The Greenback otherwise traded sideways for much of Tuesday ahead of the FOMC funds rate due for release early on Thursday. Nevertheless, the Greenback did gain against the Kiwi, Aussie and Sterling but this was mostly offset against gains by the JPY and Euro. The US DXY opens this morning at 98.07.
- NZD/AUD: 0.9582 - 0.9663 ▲
- NZD/CAD: 0.8658 - 0.8739 ▼
- NZD/EUR: 0.5889 - 0.5968 ▲
- GBP/NZD: 1.8342 - 1.8421 ▼
- NZD/USD: 0.6581 - 0.6656 ▼