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New Zealand dollar back under 67c vs the Greenback

NZD - New Zealand Dollar

In the absence of any local data on Thursday the New Zealand dollar has failed to hold on to 67c vs the US dollar and opens this morning lower around the 0.6660 mark. The NZD/USD pair has been under pressure on prospects the RBNZ may cut rates next month down to 1.25% and possibly even more to come leading towards QE next year. On the cross rate, NZD/AUD lower buying 0.9583.

Looking ahead, it is a quiet day locally with no scheduled releases, markets will be watching the North American markets for the release of US GDP figures which plays a crucial role for the US Federal Reserve as it looks to potentially cut rates. Adopting a technical viewpoint, we see initial NZD/USD support at 0.6640 on the downside followed by 0.6600. On the topside, a sustained move above 0.6700 will indicate some buying activity and if there is enough upside momentum then look to a rally towards 0.6740.

Key Movers

The European central bank met last night and said it expects its key interest rates to remain “at their present lower levels” at least through the first half of 2020. Draghi added there were additional measures to stimulate the euro zone economy. The EUR/USD briefly hit a two-year low 1.1101 following this however, Draghi also told reporters that the risk of a recession in the region was low giving a more mixed message and sending the pair higher to 1.1153.

US Durable Goods orders and shipments beat market estimates and rose 2% for the month of June being its strongest number since last summer. The rebound in durable goods orders received a boost from a turnaround in orders for transportation equipment, which surged up by 3.8 percent in June after tumbling by 7.5 percent in May. Orders for non-defence aircraft and parts soared by 75.5 percent in June after plummeting by 52.2 percent in May, while orders for motor vehicles and parts also showed a significant increase.

Expected Ranges

NZD/USD: 0.6600 - 0.6700 ▼

NZD/AUD: 0.9560 - 0.9635 ▼

GBP/NZD: 1.8500 - 1.8800 ▲

NZD/EUR: 0.5930 - 0.6000 ▼

NZD/CAD: 0.8700 - 0.8820 ▼