New Zealand dollar range bound ahead of ANZAC day bank holiday
Monday 27 April, 2020
Daily Currency UpdateThe New Zealand Dollar traded within a tight 40-pip range on Friday and closed the session a fraction higher against its US counterpart. Having opened around the 0.6012 mark, the Kiwi witnessed a round of selling dragging the NZD/USD pair to a low of 0.5975 before once again attentions focused offshore in Europe where leaders have clashed over how the €2 trillion rescue package will look to help rescue their economies from an economic slump and conscious if they get it wrong, the impact could be disastrous. The NZD/USD touched an eventual high of 0.6018. It is also worth noting the Kiwi has been well supported above 0.5915 on the back of New Zealand’s success on containing the virus, it's put them in a strong position to move into the normalisation phase.
There are no scheduled releases today as New Zealand observes ANZAC day bank holiday. From a technical perspective, the Kiwi is currently trading at 0.6013, we see 0.5910 as near-term support followed by 0.5840. On the upside, expect to see resistance on moves approaching 0.6035 and 0.6060.
Key MoversThe US Dollar Index closed the week just over the 100.00 mark as President Trump on Friday signed a $484 billion relief bill that replenishes money for small-business loans to prevent layoffs. The bill also has $75 billion for hospitals and $25 billion for COVID-19 testing. In the UK, Retails Sales recorded their largest fall on record in March as consumers were forced to restrict their shopping trips under the government lockdown. Numbers fell 5.1% despite panic buying boosting food stores by 10%.
Over in the U.S Durable Goods plunged 14.4% in March largely because of a decline for demand for big-ticket items like new cars and trucks as the virus swept through the U.S. The decline was the worst the government has ever recorded. The spread of the disease is forcing people to stay home and worry about their jobs, foregoing purchases of expensive goods. Interestingly, if you strip out the cares and planes component, orders only fell 0.2%.
- NZD/USD: 0.5880 - 0.6040 ▲
- NZD/EUR: 0.5480 - 0.5640 ▲
- GBP/NZD: 2.0430 - 2.0800 ▼
- NZD/AUD: 0.9360 - 0.9460 ▼
- NZD/CAD: 0.8380 - 0.8550 ▲