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Kiwi declines further amidst fear of a global recession

NZD - New Zealand Dollar

The NZD saw a similar decline to the AUD against the USD, mostly owing due to the weak Chinese industrial production data that was released yesterday coming back at 4.8% compared to a forecasted rate of 6.0%. Traders are also staying away from risky currencies such as the Kiwi due to fear of a global recession, which does not help it’s current value.

No major macroeconomic news affecting the NZD is expected to release until the quarterly retail sales data next Friday. Showing the change in the total value of sales at a retail level, it is the primary gauge of consumer spending which accounts for a majority of overall economic activity.

The New Zealand Dollar opened at 0.6433 against the United States Dollar this morning.

Key Movers

The ongoing protests in Hong Kong continue to grab headlines, with satellite photos showing what appear to be Chinese military amassing across the border from Hong Kong. Concerns about the global economy with the escalating US-China trade war and weak Chinese and European data overnight have been causing a risk-off sentiment, with only the safe-haven Japanese Yen and Swiss Franc outperforming against the other majors.

On the macroeconomic news front, Canadian CPI data is scheduled to be released next Wednesday night. Showing the change in the price of goods and services purchased by consumers, this monthly figure is the most important inflation related release due to its earliness and broad scope.

Further major European data is being released Thursday afternoon, with a sleuth of purchasing managers data from coming out. Focussing on France and Germany, the figures show a level of a diffusion index based on surveyed purchasing managers in the services industry and is a leading indicator of economic health.

Expected Ranges

NZD/AUD: 0.9480 - 0.9580 ▼

NZD/CAD: 0.8520 - 0.8615 ▼

NZD/EUR: 0.5725 - 0.5815 ▼

GBP/NZD: 1.8535 - 1.8850 ▼

NZD/USD: 0.6385 - 0.6480 ▼