New Zealand dollar continues to trade above US$0.61
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Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.6126 at time of writing. The NZD/USD pair extended its losses to near 0.6100 level during the Asian session on Friday. This decline can be attributed to the recovery of the US dollar (USD), which rebounded after hitting multi-week lows around 104.00 on Thursday. On the data front, New Zealand's Producer Price Index (PPI) inputs and outputs increased in the first quarter. PPI input prices rose by 0.7% compared to the expected 0.7%. While PPI output prices increased by 0.9% against the expected 0.5%. These higher-than-expected PPI figures could provide some support for the Kiwi dollar potentially limiting the downside of the NZD/USD pair. According to Stats NZ, the largest contributors to the rise in output prices were electricity and gas, which saw an 8.8% quarter-on-quarter increase. Energy costs also significantly impacted input prices, climbing 11.6%. Additionally, insurance costs substantially contributed to the increase in PPI input costs, rising by 5.0% quarter-on-quarter. Looking ahead this week and all eyes will be on the Reserve Bank of New Zealand Monetary Policy Statement. Interest rates are expected to remain on hold at 5.5%. On Thursday Statistics New Zealand will release the latest quarterly Retail sales figures and Trade Balance data on Friday.Key Movers
Last week in the United States The US Department of Labor released the US Initial Jobless Claims on Thursday. The number of Americans filing new claims for jobless benefits rose to 222,000 for the week ending May 10, surpassing the market consensus of 220,000 but below the previous week's figure of 232,000. US Consumer Price Index (CPI) decelerated to 0.3% month-over-month in April and came in at a lower than expected 0.4% reading. While Retail Sales flattened, falling short of the expected increase of 0.4%. Easing inflation figures sparked a risk appetite rally that sent the Dow Jones over the 40,000.00 major price handle on Thursday as investors pin their hopes and dreams on the Federal Reserve (Fed) delivering at least two rate cuts before the end of the year. Gold's price skyrocketed during the North American session ahead of the weekend as XAU/USD traded above $2,400, posting gains of more than 1.5% amid higher US Treasury bond yields. The non-yielding metal extended its advancement and threatened to crack the all-time high of $2,431.Expected Ranges
- NZD/USD: 0.6030 - 0.6230 ▼
- NZD/EUR: 0.5530 - 0.5730 ▼
- GBP/NZD: 2.0540 - 2.0740 ▲
- NZD/AUD: 1.0800 - 11000 ▲
- NZD/CAD: 0.8230 - 0.8430 ▼