Daily Currency Update

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Kiwi strengthens against the Greenback

NZD - New Zealand Dollar

The NZD opened at 0.7140 against the USD this morning continuing an upward trend over the last month.

Most of it was owing to negative US data showing that retail sales decreased more than expected in November with figures coming in at -1.1% compared to it’s forecast of -0.3%. This is the earliest and broadest look at vital consumer spending data, and is a majority influence on the currency. NZD GDP data released on Thursday also had positive figures showing a 14% increase compared to a forecast of 12.9%.

It is a quiet week ahead for the Kiwi with the Christmas holidays, but we may see some volatility depending on further developments with the COVID-19 situation.

Key Movers

The Bank of Japan held their final central bank meeting of the year last Friday afternoon. As it is one the primary tools the Bank of Japan uses to communicate with investors about monetary policy, it has a major impact on the JPY. The BoJ unveiled a plan that outlined effective ways in order to achieve its 2% inflation target and kept their monetary policy steady as expected. They have also advised they will extend their funding programs by 6 months to ease pandemic strain.

It is a quiet week up ahead in terms of macroeconomic news, with the US and Canada releasing their GDP data on Wednesday and Thursday respectively. Showing the change in inflation-adjusted value of all goods and services produced by the economy, it is the broadest measure of economic activity and the primary gauge of the economy’s health.

Expected Ranges

NZD/AUD: 0.9275 - 0.9375 ▼

NZD/CAD: 0.9020 - 0.9255 ▲

NZD/EUR: 0.5720 - 0.5930 ▲

GBP/NZD: 1.8815 - 1.9495 ▼

NZD/USD: 0.7020 - 0.7240 ▲