Kiwi steady ahead of RBNZ policy meeting
Monday 25 March, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand dollar offered little to excite investors through trade on Friday, maintaining a 30-point range and bouncing between session lows at 0.6868 and intraday highs at 0.6895. Having pushed through 0.69 to touch year to date highs at 0.6935 earlier in the week, investors paired gains as risk appetite wavered into the close and attentions turned to this week’s RBNZ policy announcement.The RBNZ is expected to maintain its current policy setting, leaving rates on hold at 1.75% despite mounting calls for looser monetary policy. A slows down in year on year economic growth when compared with market expectations, coupled with softer price pressures and a global central bank shift toward a dovish outlook and there could be some scope for an NZD sell off. We expect the NZD to outperform in the lead up to the policy announcement with any dovish undertone forcing a break toward supports at 0.6750.
Key MoversThe USD enjoyed mixed fortunes when valued against key counterparts on Friday, closing lower against the Yen as risk appetite faded while advancing against the Euro and commodity led currencies despite a downturn in US manufacturing data. Policy support for the USD is beginning to waver as domestic data sets point to a slowdown in domestic economic fortunes and treasury yields signal mounting fears a recession may be around the corner. The Pound rallied through trade on Friday After EU policy makers afforded Theresa May a two-week extension to the March 29 deadline if the embattled PM can win approval for her withdrawal deal. Brexit remains the sole narrative driving Stirling direction as May pushes for a clean divorce ahead of a final Parliamentary vote.
- NZD/AUD: 96.30 - 97.85 ▲
- GBP/NZD: 1.8750 - 1.9450 ▲
- NZD/USD: 0.6750 - 0.6940 ▼
- NZD/EUR: 0.5980 - 0.6120 ▲
- NZD/CAD: 0.9150 - 0.9280 ▲