Daily Currency Update

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New Zealand dollar remains rangebound

NZD - New Zealand Dollar

The New Zealand dollar remained rangebound in what was a quiet day for global markets. Opening at 0.6404 against the greenback, the release of the most recent Trade Balance print saw little movement for the local currency. The current trade deficit narrowed to 1.24 billion for the month of September as a rise in dairy and meat exports helped the overall number.

Despite intraday lows of 0.6380 on waning risk appetite, the kiwi managed to finish 0.3% higher overnight as RBNZ’s Assistant Governor Christian Hawkesby noted he was very happy with how their recent aggressive interest rate cuts were filtering through to the economy.

The New Zealand dollar opens this morning at 0.6423. We expect support levels to hold on moves approaching 0.6380, while any upward push will likely meet resistance at September highs of 0.6450.

Key Movers

Volatility is expected to remain heightened for the Great British Pound over the coming days with the European Union expected to approve Boris Johnson’s further Brexit extension requests by Friday. With Parliament rejecting the withdrawal agreement before October 31st cable dropped to overnight lows of 1.2820, Recovering to 1.2905 on open this morning, global markets await the EU’s decision to grant a 3-month flexible extension into 2020.

Elsewhere the US Dollar index was quiet, dipping slightly to 97.45 as house prices in the United States rose by 0.2% for the month of August, albeit missing market expectations of 0.4%. The ECB sets their main refinancing rate this evening and is expected to remain on hold in what will be Mario Draghi’s last ever policy meeting.

Expected Ranges

NZD/USD: 0.6380 - 0.6450 ▲

NZD/AUD: 0.9340 - 0.9420 ▲

GBP/NZD: 1.9900 - 2.0300 ▼

NZD/EUR: 0.5720 - 0.5800 ▲

NZD/CAD: 0.8350 - 0.8450 ▲