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Non-Farm Payroll figures disappoint – Kiwi steady

Monday 11 October, 2021

Daily Currency Update

NZD - New Zealand Dollar

The New Zealand dollar could not break through the 70 US cent phycological resistance line this week despite the RBNZ increasing interest rates on Wednesday to the official rate of 0.5%. The Kiwi traded in a twenty-point range during the domestic session, volatility reared its head in the lead up to Non-Farm employment results. Unemployment numbers dipped to 4.8%, while US job numbers disappointed market expectations, growing only 198K for the month of September, however, is unlikely to sway the Feds likelihood of tapering in November. The NZD/USD finished the week flat at 0.6928, following intraday highs of 0.6960. The New Zealand dollar opens this morning at 0.6920. We expect support levels to hold onto moves approaching the 69 US cent handle, while any upward push will likely meet resistance at 0.6960.

Key Movers

Risk appetite continued into the Friday bell as US Government debt ceiling decisions were delayed to December. The US Dollar Index (DXY) declined 0.1% following a disappointing non-farm payroll print. Market expectations of 500K jobs added were widely missed, adding just 194K. Equities were marginally lower and the NASDAQ most notably falling 0.5% for the day, breaking a three-day rally. Elsewhere, the loonie was one of the best performers on the day adding 0.6% against the greenback following its own robust employment figures, adding 157,000 jobs in September. Statistics showed the impressive number was enough to put employment back to pre-pandemic levels and the USD/CAD plummeted to 1.2465 and a two and a half month low. Both the euro and sterling were steady while the greenback gained 0.5% against the yen and posted a new year to date high. Monday looks to be a quiet day on the market as both Canada and the United States observe public holidays.

Expected Ranges

  • NZD/USD: 0.6900 - 0.6960 ▲
  • NZD/EUR: 0.9440 - 0.9520 ▼
  • GBP/NZD: 1.9550 - 1.9750 ▲
  • NZD/AUD: 0.5950 - 0.6010 ▼
  • NZD/CAD: 0.8600 - 0.8700 ▼