Home Daily Commentaries Kiwi steady following release of FOMC minutes

Kiwi steady following release of FOMC minutes

Daily Currency Update

NZD - New Zealand DollarThe New Zealand Dollar continued to see little price action overnight and continued to test support levels at the 64 US cent handle overnight. Opening the morning at 0.6410, the Kiwi traded in a tight 25-point range as the lower tiered data release of credit card spending data did little to sway the local currency either way.Intraday highs hit 0.6420 for the NZD/USD cross before continuing its gradual decline lower this week. Tomorrow morning is the next opportunity to see some movement in local currency markets as NZ Retail Sales is due on Friday.From a technical perspective, the NZD/USD pair is currently trading at 0.6404. We continue to expect support to hold on moves approaching 0.6380 while now any upward push will likely meet resistance around 0.6450.

Key Movers

All eyes were on the release of the latest FOMC minutes overnight as equity markets rose again on the chance that investors are betting again on further stimulus from the United States Central Bank. The FOMC minutes showed the need for flexibility as several members would have preferred 50 basis points of cuts in July. Markets are currently hinging on the next move by the Federal Reserve bank as the CME Fedwatch tool currently shows all but a guaranteed cut at the next meeting in September. Markets currently pricing a 98% change of a 25bps move downwards to a range of 1.75-2.00%.Tomorrow sees the first day of meetings at the annual Jackson Hole Symposium where leaders gather from around the world to discuss economy policy. Declining global growth is sure to be a key talking point over the coming days with central banks globally continuing to provide stimulus measures in the hopes of boosting countries around the world from slumping into recession.

Expected Ranges

  • NZD/USD: 0.6380 - 0.6450 ▼
  • NZD/AUD: 0.9400 - 0.9480 ▼
  • GBP/NZD: 1.8700 - 1.9100 ▼
  • NZD/EUR: 0.5720 - 0.5800 ▼
  • NZD/CAD: 0.8480 - 0.8540 ▼