The New Zealand Dollar is stronger this morning when valued against the U.S. Dollar as China offers no immediate trade retaliation. The Kiwi traded at a high of 0.6607 yesterday as markets took new US tariffs on Chinese imports. Domestically the kiwi got an early lift after Prime Minister Jacinda Ardern mistakenly said she was "pretty pleased" with gross domestic product growth having received a "hint" ahead of Thursday's official release of the second-quarter economic data.
On the data front today, Global Dairy Trade (GDT) which fell 0.7% in the previous auction, declined 1.3% today. We also saw the release of the Westpac Consumer Sentiment survey. Confidence among New Zealand households has seen a significant drop. The Westpac-McDermott Miller, Consumer Confidence Index, fell by 5.1 points to 103.5 in the September quarter, its lowest level in six years.
From a technical perspective, the NZD/USD pair is currently trading at 0.6593. We continue to expect support to hold on moves approaching 0.6540 while now any upward push will likely meet resistance around 0.6615.