Home Daily Commentaries NZD tracks sideways as Thanksgiving holiday quiets markets

NZD tracks sideways as Thanksgiving holiday quiets markets

Matt Richardson
Written by
Matt Richardson

Matt Richardson

OFXpert

Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange.

| Friday 29 November, 2024

Daily Currency Update

With US markets closed in observance of Thanksgiving headline news has been light and price action well contained. The NZD tracked sideways through both the local and overnight sessions, bouncing between US$0.5880 and US$0.5900. RBNZ members hit the wires speaking to inflation expectations and the potential impacts of a Trump presidency on global growth conditions. Most noted they remain confident inflation pressures will continue to ease allowing a further 50-point rate cut come February. The commentary did little to incite any major moves and our attentions turn now to domestic consumer confidence data ahead of Euro CPI, China PMI data and Canadian GDP numbers.

Key Movers

A quiet day across majors as US markets closed in observance of Thanksgiving limiting headline newsflow and tier 1 macro data releases. The USD was flat with the DXY index maintaining a narrow trading handle while most action happened across European markets. German CPI data printed softer than expected and suggest a further softening in wider Euro area CPI tonight. In France, budget concerns continue to spark broader political instability. While concessions have been made there are still difficulties and a long way to go before a vote of no confidence can be avoided. Finally, Comments from ECB member Villeroy hinted at further future rate cuts. Villeroy noted inflation is nearing a sustainable 2% target and with growth still sluggish there was no reason for policy to remain restrictive. Pricing for a rate cut in December firmed and the euro underperformed closing 0.2% lower on the day, sliding off highs near 1.0590 to trade nearer 1.0550.

Our attention today turns to Euro CPI numbers and Canada GDP data.

Expected Ranges

  • NZD/USD: 0.5820 - 0.5950 ▼
  • NZD/EUR: 0.5520 - 0.5620 ▲
  • GBP/NZD: 2.1400 - 2.1700 ▲
  • NZD/AUD: 0.8980 - 0.9100 ▼
  • NZD/CAD: 0.8200 - 0.8300 ▼

Written by

Matt Richardson

OFXpert

As a Senior Corporate Client Manager, Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange. Matt has clients who he has been working with for over a decade, a testament to his knowledge and dedication in the field. Matt is also a regular contributor on Ausbiz, offering clear and precise updates on currency market trends, showcasing his ability to interpret complex financial data into actionable insights.