Home Daily Commentaries New Zealand dollar continues to hold above the 62 US cents

New Zealand dollar continues to hold above the 62 US cents

Tuesday 26 July, 2022

Daily Currency Update

The New Zealand dollar is slightly stronger this morning when valued against the Greenback as commodity currencies showed modest gains to start the week.  The NZD/USD pair reached a overnight high of 0.6279. NZD/AUD traded just under 0.90 earlier this morning, while NZD/CAD is down 0.4% to 0.8050. NZGB and swap rates were down 8-10bps across much of the curve in direct response to Friday’s rally in US Treasuries. The 2-year swap rate closed at 4.00%, 10-year swap closed at 3.80% and the 10-year NZGB closed at 3.61%.

Looking ahead today and there are no scheduled releases in New Zealand. Tomorrow all eyes will be on ANZ Business Confidence a leading indicator of economic health.  Survey of about 1,500-2,000 businesses which asks respondents to rate the relative 12-month economic outlook. On Friday we will see the release of the Reserve Bank of New Zealand (RBNZ) Statement of Intent which provides insights into the bank's strategic priorities for the next financial year.

Key Movers

Overnight the US published the June Chicago Fed National Activity Index, which contracted by more than anticipated to -0.19 and the July Dallas Fed Manufacturing Business Index, which fell from -17.7 to -22.6, indicating slowing economic activity. Wall Street managed to close mixed, with Nasdaq posting mild losses versus the softer gains of the DJI30 and S&P 500. However, the US 10-year Treasury yields snapped a three-day downtrend and rose nearly 1.75% while regaining the 2.81% mark of late. Looking ahead this week and it is stacked full of potential market-moving events including the US Fed’s policy meeting, US GDP and employment cost index data, euro area CPI and GDP data and earnings reports from big tech companies.

Expected Ranges

  • NZD/USD: 0.6150 - 0.6350 ▲
  • NZD/EUR: 0.6050 - 0.6250 ▲
  • GBP/NZD: 1.9100 - 1.9300 ▲
  • NZD/AUD: 1.1000 - 1.1200 ▼
  • NZD/CAD: 0.7950 - 0.8150 ▼