NZD - New Zealand Dollar
Last week saw the New Zealand Dollar fall approximately 3% against its US counterpart. Having started the week around the 0.6770 handle, we now see NZD/USD trading closer to 0.6550 as we head into this week. The Australian Dollar also fell over 3.5% which saw AUD/NZD nearly 0.5% lower throughout the week. The pair is now trading below the key 1.08 handle.
A lot of the weekly move can be attributed to weaker risk sentiment and broad-based USD strength as US equities were also lower. In the AUD/NZD cross, the Australian Dollar was seemingly weighed down by rising expectations that the Reserve Bank of Australia will ease monetary policy further at the next meeting.
The data docket is light to start out the week with not much to move markets. We will see Chinese manufacturing data later on in the week as well as the key US non-farm payrolls read on Friday which will both be watched closely. Downside ANZD/USD momentum could see supports at 0.6500 tested this week.
The US Dollar index eked out a two-month high on Friday as broad based USD strength was embraced by markets. With the index rising 0.3% on the day, USD/EUR fell to a two-month low of 1.1612, USD/JPY rose to 105.70 and as we touched on above, the AUD and NZD were also lower.
In Trump-Land, the president put forward Coney Barrett as his nomination for the supreme court however given this was widely expected, market reaction is expected to be muted as markets open. There was also further comment regarding the long-awaited fiscal stimulus package in the US with House Speaker Pelosi indicating that a deal was a ‘good chance’ of being agreed.
0.6500 - 0.6600 ▼NZD/EUR:
0.5590 0.5650 ▼GBP/NZD:
1.9370 – 1.9583 ▲AUD/NZD:
1.0700 - 1.0850 ▼NZD/CAD:
0.8710 - 0.8800 ▼