Home Daily Commentaries NZD pushes back, finding support ahead of key US employment update

NZD pushes back, finding support ahead of key US employment update

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 6 December, 2024

Daily Currency Update

The New Zealand dollar crept higher on Thursday amid US dollar softness, following softer than expected US jobless claims. Having slipped below US$0.5850, the NZD found support edging steadily higher through the domestic session and overnight trade. While unable to find enough momentum to break back above US$0.59, the NZD marked a daily high just shy of US$0.5890. US jobless claims increased by 9,000 in the last week of November, a surprise uptick given thanksgiving. The four-week moving average continues to edge higher and while relatively low when compared against long run historical standards, is now nearing a level where the unemployment rate may see a significant uptick.

Having staved off a break below US$0.58, our attentions turn now to US payroll numbers ahead of next week's CPI print and the December 19 Fed policy update.

Key Movers

The USD edged lower through Thursday, weaker against G10 pairs amid softer employment data and a flattening in yields and equities. The euro was the day’s surprise out performer, jumping 0.6% and cruising back through 1.0550 to mark highs just short of 1.0585. Sentiment surrounding French political uncertainty improved, while French and Germany 10 year spreads narrowed. Comments from National Rally Leader Marine Le Pen helped calm concerns as she stated “it is possible to deliver a budget within a few weeks”. While Prime Minister Barnier lost the vote of no confidence yesterday the result was largely expected and President Macron has already confirmed he will announce a new Prime Minister in the coming days and that new government will draft a new budget bill as soon as possible.

Our attentions turn now to German trade balance and industrial production data, while US consumer spending data and non-farm payrolls dominate the macroeconomic ticket leading into the weekly close.

Expected Ranges

  • NZD/USD: 0.5800 - 0.5900 ▲
  • NZD/EUR: 0.5500 - 0.5600 ▼
  • GBP/NZD: 2.1500 - 2.1800 ▼
  • NZD/AUD: 0.9030 - 0.9150 ▲
  • 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.