NZD/USD

NZD to USD

November 26th 2021 2:00pm (NZT)

The New Zealand Dollar (NZD) extended its run to the downside over the week as the currency came under pressure from a soaring US Dollar (USD) and a somewhat less than happy RBNZ. The USD is very BID at the moment off the back of the Federal Reserve shifting more towards a hawkish view in the months ahead, if not overly hawkish, definitely less accommodative. The RBNZ stuck with its 0.25% interest rate move to 0.75% which markets saw as less aggressive. The tone of the assessment was dovish compared to predictions, taking into consideration uncertainties surrounding the economic outlook.    Trading conditions will remain thin for the rest of the week in the wake of the US Thanksgiving Holiday and equity markets could provide mixed results. Solid support is seen on the chart at 0.6820- we don’t expect the kiwi to slip below this mark.
Exchange Rates
The current interbank midrate is: NZDUSD 0.7168
The interbank range this week has been: NZDUSD 0.6837- 0.7012
NZD/AUD

NZD to AUD

November 26th 2021 2:00pm (NZT)

The iron ore rebound off recent lows has boosted the AUD this week amid a less than hawkish RBNZ. The New Zealand Dollar (NZD) has been under pressure post the RBNZ statement and rate hike Wednesday. The central bank hiked rates 0.25% to 0.75% the second time in two months but markets have viewed this as less than hawkish. We saw a 40% chance of a 50 point hike taking place; it seems market analysts have been disappointed. The cross was trading at 0.9695 (1.0315) at the start of the week and has bottomed out at 0.9525 (1.0500) in early Friday trading, the biggest weekly shift since September. Next week’s key data is quarterly Aussie GDP- we expect the release to put pressure on the AUD.
Exchange Rates
The current interbank midrate is: NZDAUD 0.9540 AUDNZD 1.0479
The interbank range this week has been: NZDAUD 0.9522- 0.9692 AUDNZD 1.0317- 1.0501
More NZD/AUD updates.
NZD/GBP

NZD to GBP

November 26th 2021, 2:00pm

Support around 0.5180 (1.9300) held for a while earlier in the week in the New Zealand Dollar (NZD), British Pound (GBP) cross, but a less hawkish RBNZ took price lower to 0.5140 (1.9460) much to our surprise. Wednesday’s RBNZ cash rate announcement and policy statement didn’t disappoint when the central bank hiked rates 0.25% to 0.75% rising for the second time in two months. With most market participants predicting a 0.25% rise it was surprising to see the NZD taper off post release. In reality the less aggressive play was perhaps seen as somewhat dovish. The RBNZ however did raise its cash rate projection to peak at 2.6% in the fourth quarter 2023 compared to 2.1% in early 2024. We expect a reversal of sorts over the coming hours as profit taking takes place and the NZD claws back losses.
Exchange Rates
The current interbank midrate is: NZDGBP 0.5139 GBPNZD 1.9459
The interbank range this week has been: NZDGBP 0.5137- 0.5223 GBPNZD 1.9145- 1.9466
NZD/EUR

NZD to EUR

November 26th 2021, 3:00pm

Big reversal moves in the Euro (EUR) this week has taken price from the August 2017 high back to the 6 week low of 0.6105 (1.6380) in one foul swoop. The main cause weirdly enough was due to a less than hawkish RBNZ stance. The RBNZ raised rates by 0.25% to 0.75% Wednesday as was mostly predicted but was it? We were surprised to see the NZD taper away post release almost as if markets were disappointed to not see a 0.50% rise. The less aggressive move perhaps seen as less hawkish putting pressure on the kiwi. The RBNZ however did raise its cash rate projection to peak at 2.6% in the fourth quarter 2023 compared to 2.1% in early 2024. With Covid on the rise and Brexit issues we don’t expect the Euro to sustain its recent climb.

Exchange Rate
The current interbank midrate is: NZDEUR 0.6098 EURNZD 1.6398
The interbank range this week has been: NZDEUR 0.6098- 0.6222 EURNZD 1.6070- 1.6397

NZD/JPY

NZD to JPY

November 5th 2021 2:00pm (NZT)

The New Zealand Dollar (NZD) is a little softer this week against the Japanese Yen (JPY) after risk conditions burdened the kiwi. The cross slipping to 80.80 early Friday. Dovish Fed communication despite equities soaring led to investors exciting the kiwi. NZ employment data surprised to the upside with the Unemployment Rate printing at 3.4% much lower than the 3.9% we were expecting. This kiwi bounced on the release but topside moves were short lived. It’s a wonder how such a read was possible given a large chunk of the population have been in lockdown for most of the last 3 months. Next week’s docket is reasonably thin with just Japanese Current Account printing.
Exchange Rates
The current interbank midrate is: NZDJPY 80.86
The interbank range this week has been: NZDJPY 80.62- 82.19

More NZD/JPY updates.

NZD/CAD

NZD to CAD

October 19th 2021, 3:00pm

4 weeks of losses for the New Zealand Dollar (NZD) came to a halt last week against the Canadian Dollar (CAD) snapping higher off the long term low of 0.8620 to close the week out around 0.8760. Rising covid infections locally have kept the kiwi under pressure of late. Inflation in NZ released at 2.2% q/q much higher than the 1.5% expected pushing the year on year number to 4.9% up from the June quarter of 3.3%. This will almost certainly have the RBNZ thinking over its monetary policy plans with markets rapidly starting to price in a 50 point hike at the November meeting. We expect to see the cross push higher this week.

Exchange Rates
Current Level: 0.8769
Resistance: 0.8850
Support: 0.8630
Last Weeks Range: 0.8617-8762

AUD/USD

AUD to USD

November 26th 2021, 3:00pm

The Australian Dollar (AUD) four week decline continued against the US Dollar (USD) dropping to 0.7180 into Friday trading. Big dollar strength has been the theme this week across the board – easily the strongest currency as the Federal Reserve starts to rethink their forward policy. The USD has been extremely BID off the back of the Federal Reserve shifting more towards a hawkish view in the months ahead, if not overly hawkish, definitely less accommodative and certainly less “transitory”. The cross looks to be well supported around 0.7150; we look for the pair to turn back recent setbacks towards the 0.7200 area by the end of the day. We have a full calendar of event risk next week, expect volatility.
Exchange Rates
The current interbank midrate is: AUDUSD 0.7168
The interbank range this week has been: AUDUSD 0.7161- 0.7274
AUD/GBP

AUD to GBP

November 26th 2021 3:00pm (NZT)

Action this week in the Australian Dollar (AUD), British Pound (GBP) pair has seen price camp out around the 0.5395 (1.8530) level, possibly consolidating post last week’s large run down from 0.5495 (1.8200). Iron Ore values have been on the move this week- up from recent lows of 84 to 95.50 per ton helping to boost AUD crosses; if not for this the AUD would almost certainly be trading much lower. UK Flash Manufacturing data and Brexit concerns have kept the GBP under pressure as well. The key standout on next week’s calendar is Aussie quarterly GDP with the number projected to come in around 0.7% ending September. We suspect the AUD may have the edge as we head into the close.

Exchange Rates:
The current interbank midrate is: AUDGBP 0.5387 GBPAUD 1.8563
The interbank range this week has been: AUDGBP 0.5376- 0.5413 GBPAUD 1.8471- 1.8598

More AUD/GBP updates.

AUD/EUR

AUD to EUR

November 26th 2021 3:00pm (NZT)

French and German Manufacturing reports all came in better than expected this week underpinning the Euro (EUR) to an extent. Price in the cross has been pivoting around 0.6420 (1.5580) for most of this week as things begin to worsen in the Eurozone covid pandemic as yield differentials widen. Also of note, German Business Sentiment declined in November as supply bottlenecks clouded the outlook. With price on the chart wafting around several moving averages we await a potential breakout- We support upside bias heading into the weekly close.

Exchange Rate
The current interbank midrate is: AUDEUR 0.6390 EURAUD 1.5649
The interbank range this week has been: AUDEUR 0.6391- 0.6455 EURAUD 1.5491- 1.5647

More AUD/EUR updates.

AUD/JPY

AUD to JPY

November 5th 2021 3:00pm (NZT)

The Australian Dollar (AUD) tracked lower over the week against the Japanese Yen (JPY) reaching 83.90 this morning. The Aussie was undermined by the dovish RBA slant Tuesday after the central bank said they were prepared to be patient with tightening policy measures as they continue to buy government securities at 4B per week until at least February next year. Governor Lowe citing supply chain uncertainty as a massive disruption to future growth forecasting and sustainable high employment. With the cross trading below the 100 day moving average Thursday this could signal further downside moves into the close.

Exchange Rates
The current interbank midrate is: AUDJPY 84.29
The interbank range this week has been: AUDJPY 83.91- 86.05