NZD - New Zealand Dollar
The New Zealand dollar opens lower this morning having given up intraday highs at 0.7090 amid a sell off across equity markets and a broader USD uptick. Markets largely ignored a string of positive domestic macroeconomic indicators, despite suggestions of a strong recovery in GDP throughout Q3 and Q4. The NZD traded sideways struggling to break above 0.7050 before making another charge toward 0.71 early in the overnight session. Having fallen short again the Kiwi retreated swiftly to mark fresh intraday and weekly lows at 0.7010.
Attentions today remain with the broader risk narrative with Brexit and US fiscal stimulus negotiations offering the potential catalyst to shape direction leading into the end of the week.
The Euro shifted lower on Wednesday slipping back below 1.21 amid a broader USD recovery. Last week’s momentum and the long run USD dollar downturn appear to be running out of steam, at least in the near term, forcing the single currency to give up 1.2150 ahead of today's ECB policy meeting. We anticipate the ECB will expand its monetary policy mandate in a bid to guide the broader European economy through the pandemic prompting our focus to shift to commentary surrounding the recent currency appreciation. The ECB signalled a rapid over appreciation in the Euro which poses risks to the pandemic recovery and as such we will be keenly attuned to any signal that suggests they may intervene to depress the currencies value and protect domestic exporters.
With little else of note on the dockets our attentions remain with Brexit and US fiscal stimulus negotiations. Boris Johnson has returned to Brussels to meet with EU leaders in a bid to rescue negotiations and push past key sticking points. The next 48 hours remain critical in shaping the Brexit narrative with time fast running out before the official divorce and break from the EU takes effect.
0.6980 - 0.7090 ▼NZD/EUR:
0.5780 - 0.5850 ▲GBP/NZD:
1.8820 -1.9220 ▲NZD/AUD:
0.9380 - 0.9550 ▼NZD/CAD:
0.8920 - 0.9060 ▼