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NZD quiet leading up to Fed Reserve announcement

NZD - New Zealand Dollar

The NZD fell throughout yesterday’s trading day as a response to the spike in Treasury Yields last week, to open at 0.6626 against the USD this morning. The Business NZ Manufacturing Index is scheduled to be released this Thursday. This data measures the level of a diffusion index based on surveyed manufacturers and is expected to have an impact on the Kiwi.

Key Movers

Lack of movement in the market is not uncommon leading up to a large announcement, as US Federal Reserve chair Jerome Powell is scheduled to speak this morning. As head of a central bank, the Federal Reserve controls short term interest rates and volatility is often experienced during his speeches as they are often used to drop subtle clues regarding future monetary policy.

There has been little news lately regarding the US-China trade war barring a trade dispute between Japan and Korea. Japan have imposed restrictions on exports to Korea that will impact the production of memory chips and smartphones. In other major news, The UK GDP data is scheduled to be released early tomorrow night. Showing the changes in the total value of goods and services, this data shows a measure of economic activity and is expected to have a major impact on the GBP.

Expected Ranges

NZD/AUD: 0.9470 - 0.9540 ▲

NZD/CAD: 0.8625 - 0.8695 ▼

NZD/EUR: 0.5945 - 0.5875 ▲

NZD/GBP: 0.5330 - 5260 ▲

NZD/USD: 0.6570 - 0.6650 ▼