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NZD finds support below 0.6200

NZD - New Zealand Dollar

The Kiwi managed to drive up through the floor of 0.6200 after dipping to hit 0.6184. The gain in the rise was owing to President Trump’s speech about China on Saturday morning, where he mentioned that he will be looking to sanction Chinese officials but did not discuss phase-one of the trade deal.

It is a quiet week up ahead for the NZD, with no major macroeconomics announcements scheduled. We may see some minor volatility on Tuesday morning however, when Statistics New Zealand release their data on Building Consents and Overseas Trade Index showing the change in the number of new building approvals issues and price of internationally traded goods respectively.

The NZD opened at 0.6205 against the USD this morning.

Key Movers

Canadian GDP dropped 7.2% in March according to data released by Statistics Canada on Friday night, causing the CAD to drop almost 50 points against the USD. Owing to the COVID-19 pandemic declared by the WHO on March 11, we are expected to see further decline as Statistics Canada’s preliminary information indicates an 11% decline for the month of April.

Chinese Manufacturing PMI data released Sunday midday saw a figure of 50.6 come back indicating industry expansion, making the PMI positive for the third month in a row. It is a leading indicator of economic health, as businesses react quickly to market conditions and purchasing managers hold a relevant insight into the company’s view of the economy.

Conversely, the US will release their ISM Manufacturing PMI data midnight on Monday. Forecast rates for this are coming back at 43.5 indicating contraction.

Expected Ranges

NZD/AUD: 0.9210 - 0.9365 ▼

NZD/CAD: 0.8470 - 0.8615 ▲

NZD/EUR: 0.5460 - 0.5675 ▼

GBP/NZD: 1.9570 - 2.0410 ▼

NZD/USD: 0.6110 - 0.6315 ▲