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NZD falls further against the USD

NZD - New Zealand Dollar

The Kiwi held steady against the physiological support level of 0.63, opening at it against the USD this morning as it fell further during yesterday’s trade session. While it saw a slight spike to stronger than expected GDP data released yesterday morning, it fell in line with the AUD as their unemployment rate went up.

The Reserve Bank of New Zealand will release their data on the cash rate next Wednesday midday. Expecting to stay at 1%, the interest rate is the rate which banks lend balances held at the RBNZ to others banks overnight. Interest rates are the dominant factor in currency valuation, and we can expect to see major movement in the NZD leading up to this announcement.

Key Movers

The US Federal Reserve cut the interest rate on a 7-3 vote, with intention to keep the economy strong and help sustain an economic expansion. As it has now lowered it’s target interest rate twice since July, Chairman Jerome Powell has suggested that policy makers are not ready yet to cut rates a third time during the post-meeting press conference. Their stance on this may change however depending on the situation with the ongoing US-China trade war.

The Bank of England left policy unchanged, and held interest rates steady yesterday at 0.75% amidst continuing Brexit uncertainty. With less than 45 days until the UK is set to leave the European Union, Prime Minister Boris Johnson has promised to deliver Brexit by October 31 “come what may” even if it means leaving on a ‘no-deal’ Brexit.

The EUR is expected to see major movement on Monday as a sleuth of manufacturing data is scheduled to be released in the afternoon. Showing the diffusion index based on surveyed managers in the manufacturing industry, it is a leading indicator of economic health as businesses react quickly to market conditions.

Expected Ranges

NZD/AUD: 0.9220 - 0.9315 ▼

NZD/CAD: 0.8285 - 0.8390 ▼

NZD/EUR: 0.5655 - 0.5740 ▼

GBP/NZD: 1.9685 - 2.010 ▲

NZD/USD: 0.6230 - 0.6335 ▼