Little changed overnight for the Kiwi dollar against the Greenback
Tuesday 3 September, 2019
Daily Currency UpdateNZD - New Zealand DollarThe Kiwi dollar opened a few pips above the 0.6300 figure, little changed from last weeks close. The Kiwi dollar is still under pressure from a weaker outlook for global growth and commodity prices. The Kiwi remains vulnerable as long as the US-China trade war continues alongside the global economic uncertainty. On the release front yesterday NZ’s terms of trade data showed a second consecutive quarterly increase in Q2 and within 2½% of the record high set at the end of 2017. In the day ahead, the GDT dairy auction is expected show flat to modest downside to pricing. From a technical perspective, the NZD/USD pair is currently trading at 0.6307. We continue to expect support to hold on moves approaching 0.6290 while now any upward push will likely meet resistance around 0.6320.
Key MoversIt has been a quiet start to the week with the US public holiday (Labor Day). Therefore all attentions turned on the United Kingdom as election speculation mounts before Brexit showdown. The Pound Sterling fell sharply on Monday against its major counterparty rivals as UK Prime Minister Boris Johnson summoned his ministers for an emergency meeting, fuelling expectations the prime minister was preparing to call a snap election should lawmakers this week vote to delay Brexit. Reports overnight indicated that an election could be called as early as Wednesday. On the release front yesterday in the UK August Markit Manufacturing PMI fell to 47.4 from 48, printing its lowest reading in over seven years. This Tuesday, the macroeconomic calendar includes the August Markit Construction PMI, foreseen at 45.9 from the previous 45.3. From a technical perspective, the GBP/USD pair is currently trading at 1.2065. We continue to expect support to hold on moves approaching 1.2040 while now any upward push will likely meet resistance around 1.2130.
- NZD/USD: 0.6200 - 0.6400 ▲
- NZD/AUD: 0.9350 - 0.9450 ▲
- GBP/NZD: 1.9050 - 1.9250 ▼
- NZD/EUR: 0.5650 - 0.5850 ▲
- NZD/CAD: 0.8300 - 0.8500 ▲