New Zealand dollar holds above 59 US cents
Daily Currency Update
The Kiwi dollar is slightly stronger this morning when valued against the Greenback. The NZD/USD pair attracted some buying for the third successive day on Friday and climbed back above the 0.5900 mark during the first half of the European session. Heading into the key data risk, expectations that the Fed is nearing the end of its policy tightening campaign continue to drag the Greenback. The NZD/USD pair is currently trading at 0.5966 at the time of writing. From a technical standpoint, we should see support for the Kiwi dollar at 0.5930 and any Resistance levels at 0.6000.Looking ahead on the data front this week and today we will see the release of the Australia and New Zealand Banking Group (ANZ) Commodity Price Index which measures the average price of the nation's main commodity exports are sampled on the global market and then compared to the previous sampling. On Wednesday the Reserve Bank of New Zealand will release the quarterly Inflation Expectations based on a survey of about 100 consumers which asks respondents where they expect prices to be 24 months in the future. Expectations of future inflation can manifest into real inflation, primarily because workers tend to push for higher wages when they believe prices will rise. Finally, on Friday BusinessNZ will release the Performance of Manufacturing Index a survey of manufacturers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
Key Movers
On Friday the US added another 150,000 jobs in October, fewer than expected, amid signs that the white-hot US jobs market is cooling. The unemployment rate rose to 3.9% from 3.8% in September. Economists had been expecting the US to add 180,000 jobs over the month. The pace of job growth slowed sharply from September when the economy added a revised 297,000 – a still impressive figure and far higher than had been expected. Wall Street finished the week with gains on Friday, following a turbulent week. The US equity benchmark, the S&P 500, advanced 0.9%, finishing at 4,356.34, posting 5.9% weekly gains. The Nasdaq Composite jumped 1.4% and ended at 13,478.28, and the Dow Jones Industrial climbed 200 points or 0.66%, clinging above the 34,000 mark. Looking ahead next week the US economic calendar features Federal Reserve speakers led by Chair Jerome Powell, Lisa Cook, Christopher Waller, Philip Jefferson, and some Federal Regional Bank Presidents. On the data front, Initial Jobless Claims and the University of Michigan (UoM) Consumer Sentiment are the primary data points to be released. On November 14th, the US will report inflation rate figures from October, which investors will closely watch to continue modelling their expectations.Expected Ranges
- NZD/USD: 0.5850 - 0.6050 ▲
- NZD/EUR: 0.5450 - 0.5650 ▲
- GBP/NZD: 2.0440 - 2.0640 ▲
- NZD/AUD: 1.0700 - 1.0900 ▼
- NZD/CAD: 0.8050 - 0.8250 ▲