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NZD/USD lower again as USD stronger across the board

NZD - New Zealand Dollar

The New Zealand dollar opens lower again this morning currently oscillating around the 0.7520 handle. With liquidity thinner than normal ahead of the Christmas holiday, the risk off mood continued to drag the Kiwi lower on Monday as concerns continue to grow over the new COVID-19 strain detected in the UK.

With markets seemingly packed up and on holidays already, the only release of note comes from across the pond as the Australian Bureau of Statistics are set to release preliminary trade data for November.

Although we’ve now seen three consecutive sessions in the red for the Kiwi, downside supports are strong around the 0.7000 handle. If sentiment can improve, we would still want to see the kiwi trading consistently above the 0.71 level before further resistance at 0.7120 and 0.7170 can be tested.

Key Movers

Brexit headlines were once again front of centre for financial markets overnight as hopes that UK and EU lawmakers could reach a deal were dashed. Michael Barnier, the EU’s chief Brexit negotiator, confirmed that the fisheries issue continues to be the main stumbling block in trade talks with the UK. The news sees GBP/USD stuck around the 1.3350 level whilst EUR/USD has slipped below 1.2200 to trade around 1.2150.

As we predicted in yesterday's commentary, the $900b US COVID-19 relief package was passed by the US congress late on Monday. It now just needs to be signed off by US President Donald Trump before the cheques are set to go out.

Expected Ranges

NZD/USD: 0.7020 - 0.7100 ▼

NZD/AUD: 0.9320 - 0.9400 ▲

GBP/NZD: 1.8750 - 1.9100 ▼

NZD/EUR: 0.5760 - 0.5820 ▲

NZD/CAD: 0.9060 - 0.9130 ▲