NZD under pressure and fails to break 68c
Friday 5 April, 2019
Daily Currency UpdateNZD - New Zealand DollarIt was a particularly quiet week on the data front for the Kiwi and therefore most of its moves have been driven by offshore events and outward flows. Out of the majors, the NZD is one of the weakest and down nearly 1.2% from a high of 0.6837 we witnessed on Monday afternoon. The NZD/USD attempted to break 68c intraday on Thursday but apparently some large corporate deals in the local share market potentially played a factor, which saw the pair fall to an eventual low of 0.6748 during the start of the North American session. Looking ahead, the domestic docket is light, investors will be focused on tonight’s US data which will see the release of government non-farm payrolls report for March, along with wage growth and unemployment figures after the Federal Reserve appeared to rule out the likelihood of any rate hikes this year.The Kiwi remains under pressure and we see initial support sitting at 0.6735 followed by 0.6720. On the upside, immediate resistance levels can be seen 0.6770 and 0.6800.
Key MoversThe US dollar index edges higher despite a lack of high tier macroeconomic data releases. The Dow and S&P500 also moved higher on the back of hopes of a trade deal between the US and China with talks continuing in Washington after last week’s meeting in Beijing. The Euro pulled back following disappointing German Factory Orders which were the weakest since the GFC, the EUR/USD hit a low of 1.1206. The Sterling meanwhile also lost all gains made in the previous session against the US Dollar as Prime Minister May engages with the opposition Labour Party leader to negotiate a Brexit deal and faces criticism from colleagues in her own party. GBP/USD moved from 1.3191 down to a low of 1.3060.
- NZD/USD: 0.6720 - 0.6800 ▼
- NZD/AUD: 0.9400 - 0.9550 ▼
- NZD/EUR: 0.5950 - 0.6050 ▼
- NZD/CAD: 0.8950 - 0.9090 ▼
- GBP/NZD: 1.9220 - 1.9500 ▼