NZD - New Zealand Dollar
The NZD advanced through trade on Tuesday, pushing 0.5% higher to 0.6430, closing the day’s top performer when compared against other G10 currencies. Having held onto gains in the wake of the RBNZ’s decision to maintain interest rates last week and its shift in monetary policy guidance the NZD found additional support in a largely positive global dairy trade auction. Prices jumped for the fifth consecutive time and while gains weren’t as large as forecast the sustained advance in prices underlies a broader recovery in one of New Zealand’s key exports.
Attentions today turn the FOMC meeting minutes as the primary marker guiding direction. With resistance on moves approaching 0.6450 any sign the Fed plans to cut interest rates further could open the door to renewed NZD upside as monetary policy guidance diverges.
Moves among major currencies were largely muted throughout Tuesday with both the USD and Euro trading flat on the day. Sterling edged lower through trade on Tuesday as investors checked expectations as the December 12 election looms ever nearer. Recent polls show the incumbent Conservatives hold a relatively comfortable lead over its primary opposition rivals bolstering expectations Johnson will be able to win a majority and force his withdrawal agreement through the House of Commons allowing the UK to exit the EU on January 31. While sterling still looks cheap much of the upside that would come from a Johnson victory has already been priced in with investors wary of extending gains significantly beyond 1.30 in the short term.
Attentions now turn to the FOMC’s meeting minutes as a key marker guiding direction on today’s docket.
0.6370 - 0.6450 ▲NZD/EUR:
0.5750 - 0.5850 ▲GBP/NZD:
1.9880 - 2.0310 ▼NZD/AUD:
0.9380 - 0.9450 ▲NZD/CAD:
0.8420 - 0.8575 ▲