NZD - New Zealand Dollar
The New Zealand Dollar finished half a cent higher for the day despite a largely quiet day on global markets. Opening at 67 US cents, the Kiwi was supported by a break in four consecutive declines for the GlobalDairyTrade price index, seeing positive territory for the first time since May.
Overnight highs reached 0.6746 as greenback sellers entered the market with US yields dropping on expectations of the Federal Reserve cutting interest rates in the future. Risk off moves supported the local currency, as the Kiwi was one of the best performing G10 currencies for the day.
It is expected to be another quiet day on the domestic front with little slated for release. From a technical perspective, the Kiwi is currently trading at 0.6733. We continue to expect support to hold on moves approaching 67 US cents while any upward push will likely meet resistance at 0.6780.
It was a quiet day globally for markets as the main focus overnight was a softening of the greenback against the majority of currencies. 10-year treasury notes was lower by 4bps to 2.06% as the market continues to bet on lower interest rates this year determined by the Federal Reserve. Furthermore the decline in the greenback can be attributed to softer reading of building permits in the United States, falling for the second straight month.
The Pound fell to multi year lows overnight of 1.2380 against the US dollar as markets continue to be worries by the increased chance of a no-deal Brexit. Cable recovered above the 1.24 handle as the British Consumer Price Index remained unchanged at 2.0% on a yearly basis.
A focus on G7 meetings continue this week as finance ministers continue to negotiate on trade tariffs. On the agenda this evening sees the release of UK Retail Sales and Philly Fed Manufacturing Index in the United States.
0.6700 - 0.6780 ▲NZD/AUD:
0.9550 - 0.9650 ▲GBP/NZD:
1.8200 - 1.8600 ▼NZD/EUR:
0.5950 - 0.6030 ▲NZD/CAD:
0.8740 - 0.8820 ▲