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Kiwi dollar pushes higher on the back of global risk-on sentiment

NZD - New Zealand Dollar

The New Zealand dollar is stronger this morning when valued against the Greenback on the back of global risk-on sentiment. The Kiwi dollar pushed up to a high of 0.6416 last night and has since settled around the 0.64 mark. A key line of resistance is at 0.6450, which was the mid-September peak.

On the release front it has been a fairly quiet start to the week in New Zealand with a light calendar and little on the agenda other than on going Brexit negotiations. Yesterday we saw the release of monthly Credit Card Spending which came in at 4.8% down from the previous 6%. There are no macroeconomic releases scheduled in New Zealand this Tuesday. From a technical perspective, the NZD/USD pair is currently trading at 0.6404. We continue to expect support to hold on moves approaching 0.6370 while now any upward push will likely meet resistance around 0.6450.

Key Movers

The Great British Pound is stronger this morning reaching a 5-1/2 month high on hopes for a Brexit deal. The Sterling rose on Monday crossing the $1.300 threshold against the Greenback after the Northern Irish Democratic Unionist Party said it would not support any amendments to the Brexit deal for a customs union with the European Union. The delay on Brexit was seen as a positive. Looking ahead today in the UK Leader of the House of Commons Jacob Rees-Mogg announced that a second reading of the Withdrawal Agreement Bill will take place on Tuesday. Leader of the Commons Jacob Rees-Mogg said not backing the proposed schedule could stop the UK meeting the 31 October Brexit deadline. UK Prime Minister Boris Johnson agreed a deal with the European Union last week, but requires the approval of both the UK and EU parliaments to come into force.

From a technical perspective, the GBP/USD pair is currently trading at 1.2960. We continue to expect support to hold on moves approaching 1.2930 while now any upward push will likely meet resistance around 1.2995.

Expected Ranges

NZD/USD: 0.6300 - 0.6500 ▲

NZD/AUD: 0.9200 - 0.9400 ▲

GBP/NZD: 2.0150 - 2.0350 ▲

NZD/EUR: 0.5650 - 0.5850 ▲

NZD/CAD: 0.8250 - 0.8450 ▼