Daily Currency Update

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Greenbank strength pushes Kiwi down ahead of FOMC minutes

NZD - New Zealand Dollar

Similar to the AUD, the New Zealand dollar saw weakness as it dipped below 0.6650 after the USD gathered strength ahead of the FOMC meeting minutes. Released Saturday morning, it showed that Fed officials viewed monetary policy likely to remain appropriate for the current time, with an eye on downside risk.

A quiet week for the Kiwi ahead with no major macroeconomic news expected to be released in the upcoming week. In terms of technical levels, the NZD opened this morning at 0.6655 against the USD and we can expect support levels to hold on moves approaching 0.6600.

Key Movers

A risk-off approach is expected following the geopolitical tension caused over the weekend, with news that the US had killed a top Iranian general in an airstrike in Baghdad causing oil prices to soar. The US manufacturing PMI data also hit its lowest level in over a decade, indicating that global growth remains under pressure.

We can hope to see some positive news with further US releases of non-manufacturing PMI data and ADP non-farm employment on Wednesday and Thursday respectively.

It is a quiet week overall for macroeconomic news with no other major data expected to be released until Friday morning in Canada, when the Bank of Canada Govenor Poloz is scheduled to speak. Volatility is experienced during his speeches as trades attempt to decipher interest rate clues.

Expected Ranges

NZD/AUD: 0.9530 - 0.9670 ▲

NZD/CAD: 0.8580 - 0.8725 ▲

NZD/EUR: 0.5905 - 0.6040 ▲

GBP/NZD: 1.9435 - 2.020 ▼

NZD/USD: 0.6600 - 0.6720 ▲