Daily Currency Update

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Kiwi trades higher on positive market sentiment

NZD - New Zealand Dollar

The New Zealand Dollar continued its trend higher pushing through 66 US cents overnight as global markets trade off positive trade negotiations between US and China. Announcing that Phase-One agreements had been completed the Kiwi saw overnight highs of 0.6614.

With a lack of domestic data to drive the local currency higher, the NZD/USD finished 0.1% in positive territory for the day as this morning sees the release of ANZ Business Confidence levels. Westpac Consumer Sentiment survey was higher for the last quarter of 2019 although the Kiwi remains flat on open this morning at 0.6597.

We expect support levels to hold on moves approaching 0.6570, while any upward push will likely meet resistance at 0.6640.

Key Movers

With a number of key Geopolitical events in focus last week, markets took a breather on Monday as investors shift their focus to a packed economic calendar this week. Yesterday saw the release of a number of important Chinese economic data releases including a positive retail and industrial production print.

Equities continued its bullish trend hitting fresh highs globally as safe haven currencies such as the USD and JPY retraced. The S&P 500 and Nasdaq are up both 23% and 28% for the year as sentiment remains positive into the festive period.

Despite the US Dollar Index (DXY) retreating against a basket of currencies by 0.15% on the day, Flash Manufacturing in the US remained in expansion territory with the NAHB Housing Market Index climbing to 20-year highs.

Expected Ranges

NZD/USD: 0.6570 - 0.6640 ▲

NZD/AUD: 0.9535 - 0.9625 ▼

GBP/NZD: 2.0000 - 2.0420 ▲

NZD/EUR: 0.5880 - 0.5950 ▲

NZD/CAD: 0.8620 - 0.8700 ▲