NZD - New Zealand Dollar
Overnight we saw the Kiwi fall against the Greenback on the back of poor Chinese data and USD strength. In the last 24 hours the Kiwi dollar is down 0.7% to 0.6670 when valued against the Greenback. On the data front this morning we saw the quarterly release of NZIER Business Confidence survey. The latest NZIER Quarterly Survey of Business Opinion (QSBO) came in weaker than expected as business confidence fell to its lowest level since March 2009, with a net 31 percent of businesses expecting a deterioration in general economic conditions over the coming months. Looking ahead for the rest of the day and we will see the release of monthly Building Consents which is a leading gauge of future construction activity.
From a technical perspective, the NZD/USD pair is currently trading at 0.6674. We continue to expect support to hold on moves approaching 0.6626 while now any upward push will likely meet resistance around 0.6664.
The Greenback is the biggest winner at the beginning of the week, ending Monday with substantial gains against most of its major rivals following news that the United States and China have resumed trade talks after the leaders of both economies met within the G-20 Summit. The United States and China agreed on Saturday to restart trade talks after U.S. President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing. On the data front the US ISM manufacturing survey fell to its lowest level since late 2016, at 51.7, although it still managed to beat market expectations. There are no scheduled releases today in the United States.
The Pound Sterling is weaker this morning when valued against the Greenback on the back of weaker than expected data release. The initial fall was triggered by the June Markit Manufacturing PMI with the index declining for a third consecutive month to 48.0, its lowest level since February 2013. Looking ahead today all attention will be on the UK Markit Construction PMI for June, foreseen at 49.2 vs. The previous 48.6. From a technical perspective, the GBP/USD pair is currently trading at 1.2645. We continue to expect support to hold on moves approaching 1.2665 while now any upward push will likely meet resistance around 1.2725.
0.6550 - 0.6750 ▼NZD/AUD:
0.9450 - 0.9650 ▲GBP/NZD:
1.8850 - 1.9050 ▼NZD/EUR:
0.5800 - 0.6000 ▼NZD/CAD:
0.8650 - 0.8850 ▼