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Kiwi breaks through 0.63 with some help from the Aussie

NZD - New Zealand Dollar

The Kiwi finds itself north of 0.63 this morning, opening at 0.6321 after Australia’s RBA helped support its cross Tasman neighbor. Adding to the momentum higher was also a softer Greenback which came under attack from some soft data and Trumps possible impeachment.

Initially there wasn’t too much to digest during the Tuesday session locally with only a quiet economic calendar to contend with. Nevertheless, things kicked up a notch when Governor Lowe spoke in country NSW and was noticeably more optimism than the market was expecting. Lowe’s upbeat speech whittled the chances of an Australian October rate cut lower and helped to support the Aussie higher. The positive vibes spilled across the Tasman and helped the Kiwi ultimately break through a stodgy 0.63 level.

Moving into Wednesday, it’s the RBNZ’s turn to move the Kiwi with the interest rate announcement set for release this afternoon. While, widely expected to be a hold, the accompanying commentary will be of interest for pundits looking for clues on the RBNZ’s thinking.

Key Movers

The United States dollar was whittled lower overnight, falling 0.27% to open at 98.33 on the US Dollar Index. It was President Trump that moved the dollar yesterday as the calls for his impeachment escalated. Reports from the Wall Street Journal have noted that Speaker Pelosi will announce a formal impeachment inquiry of Trump. The news comes on the back of a whistleblower revealing that the President encouraged Ukraine’s government to investigate Joe Biden while using foreign aid as leverage. There is also a transcript available that President Trump has so far blocked from release.

Adding to the shaky Greenback was President Trumps hardline stance against China in his speech to the UN, accusing China of a creating an unfair playing field. The clear lack of conciliatory rhetoric during a delicate negotiation helped to destabilise the Dollar further.

The Great British pound was also affected by their local politics with the Sterling kicked higher after the UK Supreme Court ruled unanimously that Boris Johnson’s suspension of parliament was unlawful. Opening this morning at 1.2492, the Sterling moved higher as the chances of a no-deal Brexit continue to be whittled lower.

Expected Ranges

NZD/AUD: 0.9255 - 0.9334 ▼

NZD/CAD: 0.8339 - 0.8402 ▼

NZD/EUR: 0.5701 - 0.5763 ▼

GBP/NZD: 1.9726 - 1.9795 ▲

NZD/USD: 0.6288 - 0.6366 ▼