Daily Currency Update

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Kiwi dollar steady against the US dollar

NZD - New Zealand Dollar

The New Zealand dollar when valued against the Greenback is relatively unchanged from yesterday sitting around 0.6360. Overnight there was further optimism on an imminent US-China trade deal being reached however the Kiwi dollars reaction has been muted with all eye’s on the Reserve bank of New Zealand’s meeting next week. The market still expecting the RBNZ to cut the official cash rate again by another 25bps.

Looking ahead today, and another quiet one, there are no macroeconomic releases scheduled in New Zealand. From a technical perspective, the NZD/USD pair is currently trading at 0.6367. We continue to expect support to hold on moves approaching 0.6340 while now any upward push will likely meet resistance around 0.6390.

Key Movers

Overnight we saw the Greenback climb to more than a five-month high against the safe-haven Japanese Yen as market expectations grew that the United States and China are inching closer to a trade deal. It was reported the two countries have agreed to roll back tariffs on each other’s’ goods as part of the first phase of a trade deal offering a new sign of progress despite the two sides’ ongoing divisions over trade. On the back of this announcement risk appetite sent the USD/JPY pair to 109.48 its highest since late May, consolidating gains above 109.30. The Japanese macroeconomic calendar will be quite busy this Friday, as the country will release September Labour Cash Earnings and Overall Household Spending. From a technical perspective, the USD/JPY pair is currently trading at 109.22. We continue to expect support to hold on moves approaching 109.30 while now any upward push will likely meet resistance around 109.60.

Expected Ranges

NZD/USD: 0.6250 - 0.6450 ▼

NZD/AUD: 0.9100 - 0.9300 ▼

GBP/NZD: 2.0050 - 2.0250 ▼

NZD/EUR: 0.5650 - 0.5850 ▲

NZD/CAD: 0.8300 - 0.8500 ▼