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Kiwi test resistance as promise of trade talks fosters risk on move

NZD - New Zealand Dollar

The New Zealand Dollar enjoyed strong gains through trade on Thursday buoyed by reports the US and China will resume trade talks next month. Thawing trade tensions bolstered markets appetite for risk, helping the Kiwi mark new two-week highs and touch 0.6396. The NZD was one of the days top performers, closing up against the Yen, Franc, USD and Euro while remaining flat against its antipodean counterpart.

As attentions remain squarely affixed to the ongoing trade narrative, investors turn their attentions to US labour market data for evidence the prolonged trade spat is starting to weigh more heavily on the US domestic economy. A strong non-farm payroll print could take the gloss of the recent Kiwi uptick and with short term resistance holding at 0.64 analysts will be looking for a miss in US data sets if they are to extend NZD upside.

Key Movers

The Great British Pound closed the day’s top performer, advancing against all G10 counterparts as Parliament wrested back control of the Brexit process from newly appointed Prime Minister Boris Johnson, reducing the likelihood a no-deal Brexit will pass. Sterling jumped through 1.23 to touch 1.2353 and opens only marginally lower this morning.

Safe haven currencies were the day’s big losers with the Yen and Swiss Franc both correcting lower. The USD pushed through 107 against the Yen touching 107.22 as demand for risk improved with thawing trade and geo political tensions.

Expected Ranges

NZD/USD: 0.6280 - 0.6430 ▲

NZD/EUR: 0.5720 - 0.6020 ▲

GBP/NZD: 1.9080 - 1.9520

NZD/AUD: 0.9310 - 0.9390 ▲

NZD/CAD: 0.8390 - 0.8490 ▲