NZD - New Zealand Dollar
The New Zealand Dollar has continued to oscillate within a tight range in the absence of any concrete local or external shocks. Opening this morning at 0.6565, the Kiwi has nevertheless found itself marginally lower against the worlds reserve currency after its largest customer, Australia, released a lacklustre employment report. The report itself undermined the Aussie significantly but only had a dampening effect on the Kiwi which finds itself well supported in the mid 65's.
To close out the week the Kiwi now turns to external releases for direction with the worlds’ two largest economies set to report on May retail sales. With global growth and trade war concerns continuing to destabilise the market, the reports will be of key interest. The Greenback has already come under pressure after the Federal Reserve indicated it may look to cut rates in the near future. Any further signs of a slowing US economy could potentially impact the Fed's rhetoric and in turn the US Dollar.
Markets have remained in a holding pattern ahead of some key events over the coming few weeks, specifically, the FOMC meeting and the G20 Summit. Amidst this context there wasn’t too many large movers besides the Australia Dollar which fell 0.2% after a disappointing unemployment rate was released. Otherwise, it was a mostly subdued with little activity in currency markets.
The Great British Pound did have some small movements as the first round of voting for the Conservative party leadership kicked off. Interestingly, Boris Johnson received more votes from his colleagues than the next three candidates combined and now holds a commanding position. Betting agencies have now priced Boris Johnson, an arch-brexiteer as an 80% favourite to win the Prime Minister-ship. Ultimately however, the Sterling was little changed on the news.
The United States Dollar also continued to trade within a tight range despite some movements in related markets. Oil was the biggest mover when prices spiked after attacks on oil tankers in the Gulf of Oman. US Treasury yields have also continued to be whittled lower on the front end of the curve despite very little news to digest. Nevertheless, market expectations of Fed cuts continue to undermine the strength of the Greenback.
0.9453 - 0.9512 ▲
0.8703 - 0.8779 ▼
0.5789 - 0.5847 ▼
1.9290 - 1.9357 ▼
0.6531 - 0.6592 ▼