NZD - New Zealand Dollar
The NZD saw a further decline in it’s value against the USD, as the manufacturing data came back at 48.2 compared to a forecasted figure of 51.1. the PMI data is one of many recent NZ releases that have come back lesser than expected, indicating that NZ GDP growth is starting to struggle.
The Kiwi has the potential to fall even further with the release of their PPI data this morning. Showing the change in the price of goods and raw materials purchased by manufacturers in NZ, it is a leading indicator of consumer inflation and can imply contraction in the sector if figures come back less than expected.
The New Zealand Dollar opened at 0.6428 against the United States Dollar this morning.
Traders are betting on the Euro to fall through the psychological level of $1.10 this month as the European Central bank prepares a stimulus package amidst the recent global economic downturn. Policy maker Olli Rehn said the package would be “impactful and significant” and would be better for the bank to overshoot than undershoot market expectations.
Furthermore, we can expect to see further short-term volatility as the US-China trade war continues to develop. The temporary license granted to Huawei by the US Commerce department is due to expire today, with expectations that they will extend it another 90 days permitting the Chinese firm to continue to purchase supplies from US companies.
All eyes are on the Economic Policy Symposium, held in Jackson Hole, Wyoming this upcoming Saturday. Attended by central bankers, finance ministers, academics and financial market participants from around the world, Federal Reserve Chair Jerome Powell’s speech is the highlight of the day as they look for signals of further rate cuts.
0.9420 - 0.9515 ▼NZD/CAD:
0.8450 - 0.8580 ▼NZD/EUR:
0.5720 - 0.5830 ▼GBP/NZD:
1.8690 - 1.9155 ▲NZD/USD:
0.6370 - 0.6475 ▼