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New Zealand dollar rises after bullish comments by RBNZ Governor Adrian Orr

NZD - New Zealand Dollar

The New Zealand dollar is stronger when valued against the Greenback. The Greenback fell sharply overnight after US President Donald Trump tweeted his complaint about the “very strong dollar” suggesting an increased risk of US currency intervention. The Kiwi dollar found support yesterday after the Reserve Bank of New Zealand Governor Adrian Orr described the 50 basis point cut in the official cash rate earlier this month as "a pre-emptive double cut" to reduce the need to cut more later. The RBNZ will now wait and observe what is happening in the market, reducing the probability of a rate cut in September.

Looking ahead and there are no macroeconomic releases scheduled today. From a technical perspective, the NZD/USD pair is currently trading at 0.6390. We continue to expect support to hold on moves approaching 0.6330 while now any upward push will likely meet resistance around 0.6410.

Key Movers

Overnight the main headline again was the continued trade war between the United States and China. China announced it would retaliate with tariffs on $75b of US imports, followed by US President Donald Trump announcing that he would add an additional 5% tariff on all $550b Chinese imports. On the back of the announcement the equity markets fell and the Greenback was down 0.4% to 0.5%. Trump also announced the US would increase tariffs on the existing $250b of Chinese imports from 25% to 30% from October 1st.

Expected Ranges

NZD/USD: 0.6300 - 0.6500 ▲

NZD/AUD: 0.9375 - 0.9475 ▼

GBP/NZD: 1.9050 - 1.9250 ▼

NZD/EUR: 0.5650 - 0.5850 ▲

NZD/CAD: 0.8350 - 0.8550 ▼