Kiwi ticks higher as USD weakens across the board
Monday 27 May, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand dollar edged higher through trade on Friday punching back through 0.65 U. S cents. much like its antipodean counterpart the NZD found support in a softer US dollar as increasing protectionism weighs on US domestic growth outlooks and opens the door for a possible Fed rate cut. The kiwi touched intraday and 10-day highs at 0.6553, bouncing off year to date lows. While the immediate downturn appears to have stalled NZ rates continued to fall through Friday with the yield curve marking new lows amplifying calls for a second RBNZ rate cut. Attentions now turn to the RBNZ Financial Stability Report and Commentary for Governor Orr Wednesday as key markers for Direction ahead of Thursday Annual budget release.
Key MoversThe US Dollar moved lower against a basket of currencies on Friday as investors began to question its status as a safe haven asset amid escalating trade tensions. Softness across manufacturing data Thursday and Capital Goods Orders Friday suggests economic growth is faltering, and as protectionist talk intensifies markets expectations for a Fed Rate cut increase. The Great British Pound advanced through trade on Friday driving higher against the USD and Euro after Prime Minister May set in place plans to step aside having failed to push through her European divorce deal. Sterling rose back through 1.27 to touch intraday highs at 1.2719. Attentions now turn to who will succeed May as leader. Fears a euro-sceptic will take her place weigh heavy on investors minds as the likely hood of a NO DEAL split increases.
- NZD/USD: 0.6450 - 0.6590 ▲
- NZD/EUR: 0.5780 - 0.5880 ▲
- GBP/NZD: 1.9280 - 1.9620 ▼
- NZD/AUD: 0.9420 - 0.9505 ▲
- NZD/CAD: 0.8690 - 0.8850 ▲