Daily Currency Update

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Kiwi touches 8-week lows against the U.S Dollar

NZD - New Zealand Dollar

The New Zealand Dollar opens weaker this morning against its US counterpart as stronger-than-expected US Payrolls lifted the Greenback. The Kiwi feel from intraday highs of 0.6765 breaking its 200-day moving average down to 0.6718 as U.S. employers added a net 196,000 jobs to their payrolls in March, up sharply from a 33,000 net gain in February, according to the Labor Department. The jobless rate in March was 3.8%, unchanged from the month before and wage growth slowed, reinforcing the Fed’s message that interest rates are on hold.

In the absence of any local data today, the Kiwi is likely to feel the pressure from last week RBNZ’s dovish tone which hinted of a rate cut as the more likely next move and may now test 0.6706 (22 Jan) lows. On the crosses NZD/AUD sitting at 10-week lows of 0.9468 and 0.5995 against the Euro.

Key Movers

Trade deal negotiations between Trump and Xi Jinping seem to be moving in the right direction with Trumps saying a deal may be reached within four-weeks reiterated by the White House economic adviser Larry Kudlow saying they are getting ‘closer and closer’.

Brexit update, talks between the government and Labour are expected to continue this week before Ms May travels to Brussels on Wednesday to seek a further delay to Brexit to 30 June 2019. The Prime Minister insists that cross-party talks were the only way to deliver Brexit after MPs voted down her withdrawal agreement three times and also passed legislation to block a no-deal Brexit. In a video released aimed directly at voters, May said “There are lots of things on which I disagree with the Labour Party on policy issues. But on Brexit I think there are some things we agree on: ending free movement, ensuring we leave with a good deal, protecting jobs, protecting security”. The GBP/USD cross is holding above 1.3 and currently buys 1.3033.

Expected Ranges

NZD/USD: 0.6650 - 0.6750 ▼

NZD/AUD: 0.9400 - 0.9520 ▼

NZD/EUR: 0.5960 - 0.6030 ▼

NZD/CAD: 0.8950 - 0.9060 ▼

GBP/NZD: 1.9280 - 1.9450 ▼