New Zealand reverses gains and falls back under 0.63 vs the Greenback
Daily Currency UpdateThe New Zealand Dollar staged a rebound attempt on Thursday following Wednesday’s poor performance. The NZD/USD pair touched a high of 0.6327 overnight following an upbeat speech made by the RBNZ Governor Orr where he dialed back expectations of the RBNZ using the unconventional policy saying that it was unlikely to be used although it was important to be prepared. The Kiwi has pulled back since as the US Dollar is continuing to benefit from political uncertainty and global growth concerns.
There are no scheduled releases locally today, tonight investors will be focused on a raft of US data which will see the release of Core Durable Goods Orders, Personal Income, Consumer Spending and Consumer Sentiment. We will also hear from a few of the Federal Reserve members on Friday, including the former chair Janet Yellen.
Adopting a technical viewpoint, we see initial NZD/USD support at 0.6260 on the downside followed by 0.6250. On the topside, a sustained move above 0.6330 will indicate some buying activity and if there is enough upside momentum then look to a rally towards 0.6350.
Key MoversThe US Dollar Index (DXY) is rallying towards its yearly high witnessed at the start of the month, the DXY hit a high of 99.28 overnight as comments from Chinese officials said Beijing is ‘preparing for positive progress’ next month in Washington. Meanwhile, Trump said a deal ‘could happen sooner than you think’. On the impeachment inquiry, A House committee released a whistle-blower report that alleges Trump tried to get Ukraine to investigate the son of former VP Joe Biden. In other news, US Pending Home Sales were up 1.6% in August showing signs of an improving market and Initial Jobless claims edged up slightly from 210k to 213k for the week.
The Pound continues to weaken falling below the 1.24 handle overnight mostly driven by political sentiment and the EUR/USD also finds itself lower buying 1.0920.
- NZD/USD: 0.6250 - 0.6330 ▼
- NZD/AUD: 0.9285 - 0.9345 ▼
- GBP/NZD: 1.9510 - 1.9750 ▼
- NZD/EUR: 0.5720 - 0.5770 ▼
- NZD/CAD: 0.8300 - 0.8380 ▼