Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

New Zealand dollar finds continued resistance at 66 US cents

NZD - New Zealand Dollar

The New Zealand dollar is slightly stronger when valued against the Greenback amidst the push higher in equity markets on Friday (the USD tends to be negatively correlated to risk appetite). The Kiwi dollar gained around 0.3% last week against the Greenback, finishing the week around 0.6555. The Kiwi traded within a less than one cent range last week with continued resistance at 0.6600. On Friday we saw the release of Business NZ Performance of Manufacturing Index (PMI) which showed New Zealand's manufacturing sector expanded for the first time since February. The seasonally adjusted PMI for June was 56.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding).

Looking ahead this week in New Zealand and today we will see the release of the services equivalent of the PMI, the Business NZ Performance of Services Index which presents business conditions in New Zealand's services sector. On Tuesday we will see the release of Credit Card Spending (YoY)(Jun) and the Global Dairy Trade Price Index. Finally on Thursday we will see the release of Trade Balance (YoY)(Jun). From a technical perspective, the NZD/USD pair is currently trading at 0.6547. We continue to expect support to hold on moves approaching 0.6515 while now any upward push will likely meet resistance around 0.6590.

Key Movers

The Greenback was broadly lower on Friday as the euro rose to just under a four-month high, with negotiations underway between European Union leaders on a recovery fund that could lift the bloc out of the current recession. The 27 EU leaders met over the weekend to put together a new stimulus plan however they are struggling to reach consensus on the 2021-27 budget, which is proposed above 1 trillion euros, and a linked new recovery fund worth 750 billion euros, meant to help rebuild southern economies most affected by the pandemic. The EUR/USD pair closed a fourth consecutive week with gains in the 1.1420 area, its second-best daily close this year. The Greenback remained under pressure on Friday as the number of new coronavirus cases in the US continued rising to daily records of over 70,000 per day. On the data front the US published the preliminary estimate of the July Michigan Consumer Sentiment Index, which came in at 73.2, much worse than the 79 expected and falling from 78.1 in the previous month. There are no scheduled releases in the United States on Monday with the market now heavily focused on the prospect of another US fiscal stimulus package coming in over the next two weeks.

Expected Ranges

NZD/USD: 0.6480 - 0.6630 ▼

NZD/EUR: 0.5630 - 0.5830 ▼

GBP/NZD: 1.9060 - 1.9260 ▲

NZD/AUD: 0.9250 - 0.9450 ▼

NZD/CAD: 0.8800 - 0.89000 ▲