Kiwi expected to see major movement with upcoming RBNZ announcements today
Wednesday 7 August, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand Dollar saw a spike against the USD rising from 0.6511 to 0.6569 as employment data came back better than expected, with the unemployment rate falling to 3.9% compared to a forecasted rate of 4.3%. Unfortunately, it fell steadily throughout yesterday’s trading session as the market settled, opening at 0.6521 against the Greenback.There is a potential for the Kiwi to see further major uptick movements after the release of the Reserve Bank of New Zealand announcements midday today. The RBA will release their official cash rate, and while the forecast is that they are expected to cut rates to 1.25% from 1.5%, this rate decision is usually priced into the market. Due to this, the cash rate is usually overshadowed by the Rate Statement as it contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision.
Key MoversThe US-China trade war continues to grab headlines as the PBOC fixes the Chinese Yuan lower, the weakest level in over a decade being labelled a ‘currency manipulator’ by the US Treasury. Reports are still that China may hold off on agreeing to a deal until after the election next year.In further macroeconomic news, the UK’s Office for National Statistics will release their results for the nation’s GBP this Friday evening. Showing the change in the total value of all goods and services produced by the economy, it is the broadest measure of economic activity and the primary gauge of the economics’ health. The Canadian Dollar can also expect to see major movement with their monthly employment data also being released Friday night. The change in the number of employed people is an important leading indicator of consumer spending, that in turns accounts for a majority of overall economic activity.
- NZD/AUD: 0.9615 - 0.9695 ▲
- NZD/CAD: 0.8615 - 0.8705 ▼
- NZD/EUR: 0.5765 - 0.5865 ▼
- NZD/GBP: 1.8465 - 1.8725 ▲
- NZD/USD: 0.6480 - 0.6560 ▼