Daily Currency Update
NZD - New Zealand DollarThe NZD rose throughout yesterday’s trading session to open at 0.6362 against the USD this morning. Apart from the GBP, the Kiwi has been the only other key currency mover rising up 0.6% for the day. This move can be owing to the RBNZ Monetary Policy Statement released midday Wednesday that is currently expected to be a 25 bps cut. Just after midday, the RBNZ will also release their inflation expectations data that is expected to have a major impact on the Kiwi. The data measures the percentage that business managers expect the price of goods and services to change, and expectations of this future inflation can manifest into real inflation because workers tend to push for higher wages when they believe prices will rise.
Key Movers
On the Brexit front, Brexit Party leader Nigel Farage says he has ditched plans to take on the Tories in the 317 seats won by them in 2017, and will continue to stand elsewhere. This move will help the chance of Boris Johnson winning a majority government in the December election, and to avoid pressure not to split the pro-Brexit vote and reduce the chance of a second referendum that could cancel Brexit. Over the weekend, US President Donald Trump appeared to dismiss any reports of the imminent lifting of tariffs and not agreeing to anything yet on the trade deal. This set market participants in a fret about the implications for global economic growth. Weaker than expected Chinese data released yesterday also did not help this sentiment, with the Chinese CSI 300 Index falling 1.8%. In terms of macroeconomic news, the UK Office for National Statistics will release their CPI data tomorrow evening. Showing the change in the price of goods and services purchased by consumers, this is considered the UK’s most inflation data as consumer prices account for a majority of overall inflation.
Expected Ranges
- NZD/AUD: 0.9205 - 0.9345 ▼
- NZD/CAD: 0.8360 - 0.8470 ▲
- NZD/EUR: 0.5700 - 0.5820 ▲
- GBP/NZD: 1.9805 - 2.055 ▲
- NZD/USD: 0.6305 - 0.6415 ▼