NZD - New Zealand Dollar
The New Zealand Dollar like the Aussie benefitted on Friday after a Bloomberg report revealed that the US had reached a “phase-one” trade deal with China which suspended the planned US tariffs on around $160 billion worth of Chinese goods due to take effect on December 15. This coupled with weakness in the US dollar primarily on the back of an upsurge on the Pound saw the NZD/USD touch highs of 0.6635 on Friday morning. As the European and North-American markets opened the trade deal wasn’t enough to hold the Kiwi’s momentum and we saw the pair retreat back under 66c to a low of 0.6581.
Opening this morning at 0.6590, we can expect to see near-term support at levels around 0.6560 followed by 0.6520. On the upside, resistance is sitting at 0.6624. Looking ahead, there are no scheduled releases today but it is a busy week on the economic calendar for New Zealand. Tomorrow we see consumer and business confidence and later in the week the focus will shift to GDP number on Thursday.
The UK Conservative party won the general election securing a landslide victory against the Labour party. The final numbers were 365 seats vs 203 seats which is the biggest win since Thatcher’s landslide in 1987. Jeremy Corbyn apologised for the defeat and said he will not be leading the party into another election. The GBP/USD surged from levels of around 1.3110 to a high of 1.3514 touching 18-month highs as Johnson’s deal is now likely to be passed in Parliament . The Pound did reverse about half of those gains and closed the week at 1.3330.
In other news, the we saw US Retail Sales numbers released on Friday, sales increased by 0.2% last month which were less than forecast of a 0.5% increase. Americans are cutting back on discretionary spending such as restaurant, bars and book stores.
0.6520 - 0.6630 ▼NZD/AUD:
0.9520 - 0.9660 ▲GBP/NZD:
1.9950 - 2.0350 ▲NZD/EUR:
0.5820 - 0.6000 ▲NZD/CAD:
0.8600 - 8740 ▼