NZD - New Zealand Dollar
The domestic docket offered little to excite investors throughout Asian trade on Friday moving between 0.6501 and 0.6516 vs the Greenback. The New Zealand Dollar’s direction was governed by offshore movements later in the day pushing it as high as 0.6547 unfortunately, these gains were short-lived as risk aversion reared its head following Trumps latest tariff announcement on Mexican Imports. The pair closed the New York session at 0.6533 and opens this morning at 0.6530.
Today is a public holiday in New Zealand, so we can expect to see light trading and little moves consolidating in a six-day hold of 0.6500-0.6560 range. The NZD/USD pair will likely remain weighed down by the RBNZ’s easing bias and pulling under 65c over the short-term can’t be ruled out.
Tensions are still high between the U.S and China and no signs of any progress between the two countries. Interestingly Hu Xijin, editor-in-chief of the Global Times in China took a shot at Trumps latest announcement. He tweeted “Tariffs can not only block cheap products, but also curb illegal immigration! White House is so imaginative in using tariffs”. His comments came after an announcement by the U.S to slap a 5% tariff on all Mexican imports from June 10th. He also added that “Beijing will not wait passively”, indicating a restriction on rate earth exports, although, “rate earths” are not that rare with Australia and Canada being suppliers as well.
GBP/USD witnessed further selling touching a low of 1.2559, a level not seen since Jan 2019 on the back of politics and Brexit. Nigel Farage's Brexit Party won the election, sending the ruling Conservatives to the fifth place. Former foreign secretary Boris Johnson is still a favourite to become the next Prime Minister however he faces strong competition with former Brexit secretary Dominic Raab and Jeremy Hunt who is the current foreign secretary all hoping for the top job.
0.6470 - 0.6560 ▼NZD/EUR:
0.5820 - 0.5880 ▼NZD/AUD:
0.9380 - 0.9470 ▲GBP/NZD:
1.9200 - 1.9400 ▼NZD/CAD:
0.8790 - 0.8800 ▲