The New Zealand Dollar slipped below its previous 0.7 level to open this morning at 0.6984. Spurred downwards by positive employment figures out of the US, the Kiwi was the unfortunate recipient of a resurgent Greenback which rose against most currencies.
The Impetus for the drop was a better than expected non-farm payroll report which had a few positive headlines. Both the jobs created and the unemployment rate beat expectations, leading to a strengthening of the USD. Across the Atlantic, the situation in Italy seems to have a resolution in sight, calming markets for the time being and allowing risk appetites to remain healthy and supporting the NZD. Closer to home, the Aussie cross rate remains relatively resilient with little movement either way. Australia now looks to the retail sales reading today and an RBA statement tomorrow, potentially signalling interest rate intent and is of keen interest to Australian traders.
Looking forward, domestically, the economic calendar remains bare with little to note. The market now turns to the developing headlines as an emboldened Trump looks to impose tariffs on key allies. The trade tensions have shaken markets in the western hemisphere and remains the focus of the week.