Daily Currency Update

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Kiwi dollar slightly higher across the board

NZD - New Zealand Dollar

The Kiwi dollar opened lower yesterday against the Aussie Dollar in the wake of the surprise outcome of Australia’s election which saw Scott Morrison and the Liberal-led coalition hold on to power. The Aussie dollar has been the top performing currency this week, opening around 1% higher on the market open Monday morning. The NZD/AUD pair is currently trading higher this morning at 0.9457. On the data front today we will see the release of NZ Credit Card Spending at 11am. Tonight another Global Dairy Trade auction is scheduled with expectations for prices to be flat or down slightly. Looking ahead for the rest of the week and tomorrow we will see the release of quarterly Retail Sales. On Friday we will see the Trade Balance release for the month.

From a technical perspective, the NZD/USD pair is currently trading at 0.6536. We continue to expect support to hold on moves approaching 0.6520 while now any upward push will likely meet resistance around 0.6550.

Key Movers

Global equity markets remained under pressure overnight as restrictions on Huawei continue to weigh on market sentiment. Google announced yesterday that it would stop providing some updates to its Android operating system to Huawei for future smartphones. As a result the U.S dollar is roughly unchanged this morning when valued against its major counterparts. Looking ahead today in the US and the macroeconomic calendar is quite light with the only release April Existing Home Sales seen increasing by 2.6% after falling 4.9% in the previous month.

The Euro extended its decline overnight against the U.S dollar falling to 1.1150 on the back of risk-averse headlines US-Sino trade war and Brexit. On the data front today in the EU will see the release of Consumer Confidence for the month of May, which is seen improving just modestly, to -7.6 vs. the previous -7.9. From a technical perspective, the EUR/USD pair is currently trading at 1.1164. We continue to expect support to hold on moves approaching 1.1150 while now any upward push will likely meet resistance around 1.1190.

Expected Ranges

NZD/CAD: 0.8670 - 0.8880 ▼

NZD/AUD: 0.9350 - 0.9550 ▼

NZD/EUR: 0.5750 - 0.5950 ▲

NZD/USD: 0.6430 - 0.6640 ▼

NZD/GBP: 0.5030 - 0.5240 ▲