New Zealand dollar is steady trading around US$0.59
Daily Currency Update
The Kiwi dollar is slightly lower this morning when valued against the Greenback. The Greenback staged a recovery against the New Zealand Dollar on Thursday, as the NZD/USD pair dropped 0.13% following the release of data from the United States (US). The pair is currently trading at US$0.5901 at the time of writing after hitting a daily high of US$0.5944. A break below US$0.59 could open the door to test the year-to-date (YTD) low of US$0.5859. On the other hand, the major would shift neutral if NZD bulls reclaim the US$0.60.On the data front today traders are bracing for the release of New Zealand Manufacturing PMI data. Although most PMIs released worldwide suggest an ongoing economic slowdown, NZ is not immune. New Zealand’s PMI shrank for five consecutive months, with the trend expected to extend to August, with estimates of 46.0. Besides that, NZ’s major trading partner, China, is expected to release retail sales and industrial production. If the data returns positive and exceeds prior readings, that could lend a lifeline to the NZD/USD pair.
Key Movers
The US Department of Commerce revealed that August retail sales rose by 2.6% YoY, below July’s downward revised 2.6% figures, and missed estimates of 2.9%. Digging deeper into the data, core Retail Sales, which exclude volatile items, grew by 0.2% beneath forecasts of 0.6%. While the US Bureau of Labor Statistics (BLS) revealed the Producer Price Index (PPI) for the same period as the above-mentioned. The PPII climbed 1.6% YoY in August and exceeded estimates of 1.2%, doubling July’s 0.8% increase. Other data announced by the BLS showed that Initial Jobless Claims for the week ending September 9 rose to 220K, below the consensus of 225K, underscoring a hot labour market.The pound is notably bearish for Thursday, briefly breaking beneath the US$1.2400 major handle against the Greenback as bears keep the GBP pinned to the floor. Risk appetite continues to waffle for the pound after Wednesday’s disappointing showing on the United Kingdom’s (UK) economic calendar docket. Gross Domestic Product (GDP) figures for the UK slipped more than markets expected, with the July figure decreasing by 0.5%, worse than the expected 0.2% decline and wiping out the previous month’s 0.5% gain.
Expected Ranges
- NZD/USD: 0.5800 - 0.6000 ▲
- NZD/EUR: 0.5450 - 0.5650 ▲
- GBP/NZD: 2.0850 - 2.1050 ▼
- NZD/AUD: 1.0760 - 1.0960 ▼
- NZD/CAD: 0.7870 - 0.6070 ▼