Home Daily Commentaries Kiwi dollar steady as markets await Brexit developments

Kiwi dollar steady as markets await Brexit developments

Daily Currency Update

NZD - New Zealand DollarThe New Zealand dollar is slightly stronger this morning when valued against the Greenback. Yesterday we saw the Kiwi dollar trade within a 15 point range 0.6403 – 0.6418. The New Zealand dollar has recently found some domestic trade support as New Zealand’s October trade results revealed a bigger than expected exports boost. On the release front yesterday the November ANZ Business Outlook Survey was much stronger across the board. Headline business confidence jumped 16 points to a net 26% of respondents reporting that they expect general business conditions to deteriorate in the year ahead. While still not a great level, this is the highest read this year. Looking ahead today and all eyes are on Monthly Building Consents which are a leading gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building. From a technical perspective, the NZD/USD pair is currently trading at 0.6417. We continue to expect support to hold on moves approaching 0.6400 while now any upward push will likely meet resistance around 0.6430.

Key Movers

The Pound sterling overnight briefly touched near seven-month highs against the euro on a poll predicting a comfortable election victory for the ruling Conservatives. UK Prime Minister Boris Johnson is on course to win a majority of 68 in parliament, according to a model from pollsters YouGov that accurately predicted former prime minister Theresa May’s loss of her majority in a 2017 election. However, a hung parliament still not off the table. From a technical perspective, the pound rose to a one-week high of $1.2953 against the Greenback, then slipped, ending 0.2% weaker on the day to $1.2907. On the release front yesterday in the UK November Nationwide Housing Price Index, which was up by 0.5% MoM and by 0.8% YoY, beating the market’s expectations. This Friday, the UK will release the GFK Consumer Confidence Survey, seen at -14 in November, unchanged when compared to the previous month. Looking ahead today and we will see the release of both October Mortgage Approvals and Money data.

Expected Ranges

  • NZD/USD: 0.6300 - 0.6500 ▲
  • NZD/AUD: 0.9350 - 0.9550 ▲
  • GBP/NZD: 2.0000 - 2.0200 ▼
  • NZD/EUR: 0.5750 - 0.5950 ▼
  • NZD/CAD: 0.8400 - 0.8600 ▲