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New Zealand Dollar continues to gain ground against the US Dollar

NZD - New Zealand Dollar

The New Zealand Dollar continues to gain ground against the Greenback. The NZD/USD pair climbed 0.85% last week against the Greenback moving toward last week’s high it 0.7275, the strongest level since April 29, after the release of the US employment report. The Greenback remains under pressure across the board as equity prices on Friday rose on Wall Street amid lower US yields. The Dow Jones rose by 0.42% while the Nasdaq rose by 1.38%.

There are no scheduled releases in New Zealand today. Looking ahead and the New Zealand calendar is very quiet with the only two scheduled releases this week being Thursdays Food Price Index (FPI) and the Business NZ Manufacturing Index on Friday. From a technical perspective, the NZD/USD pair is currently trading at 0.7255. We continue to expect support to hold on moves approaching 0.7205 while now any upward push will likely meet resistance around 0.7270.

Key Movers

On Friday US President Joe Biden defended his big-spending plans to kick-start the US economy after a disappointing jobs report showed the number of Americans entering the workforce fell well below expectations. The US economy added just 266,000 jobs in April, well below economists’ expectations that around 1 million jobs would be created as vaccination numbers soar and COVID-19 cases decline. The US unemployment rate remains essentially unchanged at 6.1 percent, well above the rate of 3.5 per cent when the pandemic hit.

Reports over the weekend we see the worrying rise in mucormycosis fungal infection in recovered COVID patients in India as the country battles the second wave of the coronavirus. Fifty mucormycosis patients are being treated at our hospital and 60 more are awaiting treatment. They all came to our hospital in the last three weeks and have recovered from COVID-19 recently. Although the daily infection numbers in India dipped below 400,000 recently, they have risen again, with a new record on May 6 of more than 414,000 infections. On the same day, the country recorded 3920 deaths.

Expected Ranges

NZD/USD: 0.7150 - 0.7350 ▲

NZD/EUR: 0.5870 - 0.6070 ▲

GBP/NZD: 1.9100 – 1.9300 ▼

NZD/AUD: 1.0650 - 1.0850 ▼

NZD/CAD: 0.8700 - 0.8900 ▼