NZD - New Zealand Dollar
The Kiwi continues to climb, confidently breaking through the resistance level of 0.6600 during yesterdays trading session, to open at 0.6635 this morning against the USD. Currently at a one month high, we can expect support levels of 0.6580 to hold during the quiet holiday season.
Much of this can be owing to renewed optimism regarding the US-China trade war, helping the NZD gather strength as US President Donald Trump has advised they have achieved a breakthrough in the trade deal with China and will be signing it soon.
China has announced they will reduce tariffs on a range of over 850 products such as frozen pork to tech parts commencing from the 1st of January. The changes were in response to a slowing economy as Beijing looks to boost imports, and a truce with the US as President Trump advises they are close in a trade-deal with China.
Over in Canada, their GDP data came back less than expected at -0.1% compared to it’s forecasted rate of 0.1% indicating contraction in the economy. This is the first month-to-month decline since February and the latest warning sign that the Canadian economy has stalled.
We can expect a quiet holiday season with no major macroeconomic news being released until NYE with the US Chicago PMI. Showing the level of a diffusion index based on surveyed purchasing managers, it is a leading indicator of economic health.
0.9495 - 0.9665 ▲NZD/CAD:
0.8700 - 0.8825 ▲NZD/EUR:
0.5905 - 0.6115 ▲GBP/NZD:
1.9215 - 1.9880 ▼NZD/USD:
0.6540 - 0.6735 ▲