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NZD sees volatility on back of quantitative easing talks

NZD - New Zealand Dollar

The NZD spiked to 0.6466 against the USD during yesterday’s trading session. The volatility can be owing to comments by New Zealand’s Treasury that quantitative easing (QE) carried risks that make it a less appealing tool of monetary easing. The Treasury has noted that the RBNZ could cut rates into the negative territory if required to an effective lower bound of -0.35%.

It is all quiet on the macroeconomic front, with no major news coming out to affect the NZD until next week when the quarterly retail sales data will be released.

The New Zealand Dollar opened at 0.6445 against the United States Dollar this morning

Key Movers

It was turmoil in Hong Kong as protestors in the airport caused all flights to be cancelled. This coupled with the escalating US-China trade war caused a risk-off sentiment overnight with most major currencies dropping, and only the safe-haven JPY and CHF outperforming.

The UK will release their monthly CPI data on Wednesday afternoon. Showing the change in the price of goods and services purchased by consumers, this is considered the UK’s most important inflation data as it is used as the central bank’s inflation target.

Major macroeconomic data is scheduled to be released on Thursday night by the US showing their retail sales figures. These figures will show the change in the total value of sales at the retail level which accounts for the majority of overall economic activity. Traders are expecting a bit of volatility with forecasts showing a 0.3% figure compared to the previous month’s of 0.4%.

Expected Ranges

NZD/AUD: 0.9500 - 0.9580 ▼

NZD/CAD: 0.8490 - 0.8575 ▼

NZD/EUR: 0.5690 - 0.5780 ▼

GBP/NZD: 0.5305 - 0.5380 ▲

NZD/USD: 0.6385 - 0.6475 ▼