Daily Currency Update
NZD - New Zealand DollarThe NZD saw a modest rise during Friday’s trading session with RBNZ Governor Orr and Assistant Governor Hawkesby providing multiple comments indicating that the RBNZ is on hold for now, although it could cut the cash rate again if needed.Business manufacturing data released Friday also came back better than expected at 52.6 compared to last month at 48.8, indicating that the manufacturing sector has come out of contraction. In terms of future data, the RBNZ will release their inflation expectations tomorrow showing the percentage of business manages that are expecting the price of goods and services to change during the next 2 years.The Kiwi opened against the USD at 0.6402 this morning.
Key Movers
The USD rose against safe haven currencies on the back of positive trade talk news released Friday with mentions of phase one negotiations being held in “constructive discussions”. White House economic adviser Larry Kudlow advised reporters that they are coming down to the “short strokes” and in communication with China every day. While he acknowledge a deal was close, they are “not done yet”.Furthermore, we saw US Retail Sales exceed it’s forecasted data of 0.1% with figures showing the change in the total value of sales at the retail level at 0.3%. This indicates that consumer spending has risen in the past month, pointing to a strengthening economy.Over the in UK, the Office for National Statistics will release their preliminary GDP data tonight. Showing the change in the inflation-adjusted value of all goods and services produced by the economy, it is the broadest measure of economic activity and the primary gauge of the economy’s health.
Expected Ranges
- NZD/AUD: 0.9315 - 0.9470 ▲
- NZD/CAD: 0.8410 - 0.8545 ▲
- NZD/EUR: 0.5715 - 0.5875 ▲
- GBP/NZD: 1.9745 - 2.0555 ▲
- NZD/USD: 0.6340 - 0.6495 ▲