NZD - New Zealand Dollar
The New Zealand Dollar recovered nearly half a cent from its lowest point yesterday to open this morning at 0.6331 despite very little domestic news to digest. Initially finding itself under pressure due to a strong United States Dollar the Kiwi extended its weekly loss to as low as 0.6270 before finding its feet after the Greenback weakened significantly overnight. While trading to the whims of the worlds reserve currency the Kiwi did enjoy an as expected GDT Dairy Auction with the price index falling 0.4% and whole milk powder down 0.8%.
Moving into Wednesday the Kiwi again enjoys a quiet day on the domestic calendar with direction to be driven by our friends across the Tasman and Chinese PMI data.
The United States Dollar finds itself under pressure this morning following a weak ISM manufacturing report which saw the headline index fall to 49.1 against expectations of 51.2. The market interpreted the news as a signal that US manufacturing is indeed weakening as much as the rest of the global manufacturing sector and that the Trade War was starting to bite. Adding fuel to the fire was a few more salvos in the Trade War with president Trump remaining defiant despite a number of headwinds. Trump suggested that a trade deal with China would be much tougher should he win the 2020 election and that the EU could also be in the firing line.
The poor data and escalations in the Trade War leave the door open for future Federal Reserve easing which has led the Greenback lower. The US Dollar Index found itself nearly 0.5% lower from its multi-year high.
The Great British Pound also again enters a key movers section with a roller coaster session overnight leaving the Sterling trading at 1.2088 this morning. The Pound has been trading on Brexit for some time now with Tuesday being no exception. The Sterling initially hit lows of 1.190 before recovering to as high as 1.21 before settling somewhere in between as Boris Johnson lost his majority in Parliament. With the chance of avoiding a No-Deal Brexit suddenly receiving an increased chance the Pound recovered slightly.
0.9327 - 0.9399 ▼NZD/CAD:
0.8404 - 8489 ▼NZD/EUR:
0.5733 - 0.5801 ▼GBP/NZD:
1.9044 - 1.9126 ▲NZD/USD:
0.6301 - 0.6367 ▼