NZD at lowest level since 2015
Daily Currency UpdateThe NZD finally saw some positive movement during yesterday’s trading session, rising about 40 points due to positive trade talk from the Chinese Commerce Ministry. Despite this, it then fell again through the day, hitting a fresh new low of 0.6305 against the USD – The lowest since September 2015 as it suffers further in this risk-off market.
Many traders perceive the NZD to be undervalued and is tipped for outperformance as their research suggest a turnaround as global investors rediscover their risk appetites.
Likewise with the AUD, China data being released on tomorrow morning can also have a major impact on the Kiwi. The figures for manufacturing index will show if the Chinese economy is slowing down due to the increased tariffs with the US, and can affect NZD due to their exports to China.
Key Moversisk assets have been boosted overnight as China calls for calm in the trade war. China Ministry of Commerce Gao Feng has advised that Beijing to will not immediately retaliated to the US’s latest tariffs, coming into effect this Sunday. The market is hopeful that this is the beginning of the end of tariff retaliation’s on both sides.
In Brexit news, UK PM Boris Johnson states that they will ‘step up the tempo on new deal talks. Both sides are expected to meet twice a week, as the UK Government is looking to block a no deal.
US GDP results yesterday night came back as expected at a released figure of 2.0% compared to a forecasted figured of the same. Released quarterly, it is the broadest measure of economic activity and the primary gauge of the economy’s health. In line with this, CAD GDP is scheduled to be release tonight. Expected to have a major impact on the CAD, the GDP figure is the change in the inflation-adjusted value of all goods and services produced by the economy.
- NZD/AUD: 0.9320 - 0.9425 ▼
- NZD/CAD: 0.8330 - 0.8425 ▼
- NZD/EUR: 0.5630 - 0.5750 ▼
- GBP/NZD: 1.9085 - 1.9530 ▲
- NZD/USD: 0.6240 - 0.6375 ▼