New Zealand dollar opens slightly stronger against the greenback
Tuesday 16 November, 2021
Daily Currency Update
NZD - New Zealand Dollar
The New Zealand dollar gained slightly on Monday against the greenback advancing by 0.07%, and trading at 0.7080 overnight high. The rise of the Kiwi dollar was partly due to a rise in US Treasury yields underpinned the greenback with the US Dollar Index. On the data front yesterday we saw the release of Visitor Arrivals. Annual arrivals in the September 2021 year compared with the September 2020 year, the number of visitor arrivals was 208,000, down by 2.0 million.
Looking ahead today and it’s a quiet day with no scheduled data release. On Wednesday we will see the release of Quarterly Producer Price Index (PPI) and GlobalDairyTrade (GDT). On Thursday the Reserve Bank of New Zealand will release Inflation Expectations which is a Survey of about 100 consumers which asks respondents where they expect prices to be 24 months in the future. From a technical perspective, the NZD/USD pair is currently trading at 0.7040. We continue to expect support to hold on moves approaching 0.6970 while now any upward push will likely meet resistance around 0.7085.
Key MoversOvernight in the US, we saw the release of the upbeat NY Empire State Manufacturing Index, which improved to 30.9 in November from 19.8 previously. However, US government bond yields jumped north, pushing equities lower. The yield on the 10-year US Treasury note peaked at 1.62%, while that on the 30-year note reached a two-week high. Looking ahead and on Tuesday, the EU will publish the second estimate of its Q3 Gross Domestic Product, foreseen unchanged at 2.2% quarter on quarter. The US will release retail sales for the month of October which is expected to be up 0.7% MoM. An upbeat reading may push the greenback further higher.
- NZD/USD: 0.6950 - 0.7150 ▲
- NZD/EUR: 0.6050 - 0.6250 ▲
- GBP/NZD: 1.8900 - 1.9100 ▼
- NZD/AUD: 1.0300 - 1.0500 ▼
- NZD/CAD: 0.9100 - 0.9300 ▲