currency

The New Zealand Dollar (NZD) moved to the edge of the recent uptrend early this week against the Australian Dollar (AUD) to 0.9260 (1.0800) bouncing off the 50% Fib level before spiking into Tuesday to 0.9285 (1.0770) as the kiwi looks to extend its recent form higher. Data this week comes in the form of the Australian Jobs report with predictions the unemployment rate to rise from 3.9% to 4.0% – not enough for the RBA at this stage to consider cutting their cash rate earlier with jobs data still running hot. The NZD looks to be well supported on dips following the run higher from 0.9070 (1.1025)

Current Level: 1.0769
Resistance: 1.0850
Support: 1.0700
Last Weeks Range: 0.9231 – 0.9235

The New Zealand Dollar (NZD) moved to the edge of the recent uptrend early this week against the Australian Dollar (AUD) to 0.9260 (1.0800) bouncing off the 50% Fib level before spiking into Tuesday to 0.9285 (1.0770) as the kiwi looks to extend its recent form higher. Data this week comes in the form of the Australian Jobs report with predictions the unemployment rate to rise from 3.9% to 4.0% – not enough for the RBA at this stage to consider cutting their cash rate earlier with jobs data still running hot. The NZD looks to be well supported on dips following the run higher from 0.9070 (1.1025)

Current Level: 0.9277
Resistance: 0.9345
Support: 0.9220
Last Weeks Range: 1.0723- 1.0832

The New Zealand Dollar (USD) was hammered late Friday loosing over ¾ of a cent against the US Dollar (USD). US jobs data came in mixed, unemployment ticked up to 4.0% from 3.9% but NFP jobs increased a seasonally adjusted 272,000 in May, well above the 182,000 we had expected. This comes as quite the surprise after recent reports of a weakening economy. Interest rate cuts have been adjusted to 1 cut in November 2024 from the original 6 in 2024 which rallied the greenback. The Fed will keep rates unchanged when they meet Thursday however we are expecting more clues as to the Fed’s long term policy predictions and how this may filter through to currency moves. We think downside momentum for the kiwi may continue this week.

Current Level: 0.6124
Support: 0.6050
Resistance: 0.6240
Last week’s range: 0.6100- 0.6214

The New Zealand Dollar (NZD) pushed its way past resistance at 0.4840 (2.0660) this week against the British Pound (GBP) on its way to post 0.4855 (2.0600) in early Friday. The first time in 14 weeks (late Feb) we have seen these prices in the cross. UK construction rose in May, the index reporting 54.7 vs 52.5 expected, the biggest increase in activity in two years. Nevertheless, the UK economy is contracting at a rapid rate with worrying times ahead. We could see further upside in the NZD towards 0.4870 (2.0530) where heavy resistance sits.

The current interbank midrate is: NZDGBP 0.4839 GBPNZD 2.0665

The interbank range this week has been: NZDGBP 2.0605- 2.0757 GBPNZD 0.4817- 0.4853

The New Zealand Dollar (NZD) extended moves higher over the week against the US Dollar (USD) to reach 0.6210 as risk assets continue to do well. The big dollar slumped post ISM manufacturing data contracting in May for the second straight month. The new order index came in at 45.4 falling 3.7% points compared to April. US ADP also contracted in the month of May with numbers at 152,000 compared to 173,000 expected. This in turn led to the US treasury 10 year falling to a 2-month low. All eyes are on tonight Non-Farm Payroll release with expectations of a drop in the number of new people who found employment in May. The cross is trading just below the yearly high of 0.6280 and may find it tough to breach resistance at 0.6220.

The current interbank midrate is: NZDUSD 0.6192

The interbank range this week has been: NZDUSD 0.6118- 0.6214

The New Zealand Dollar (NZD) continues to extend moves higher against the Australian Dollar (AUD) reaching 0.9330 (1.0720) in Thursday trading. Friday prices sit just off this around 0.9305 (1.0750) as I write. Wednesday’s Australian GDP came in lower at 0.1% compared to 0.2% expected surprising markets, the AUD slid further over the news. Governor Bullock making earlier comments suggesting if growth was lower the RBA would consider cutting interest rates. However, she also said post release that if inflation remained sticky the RBA could hike interest rates again if needed. It’s also worth noting that with a slide in iron ore prices and less of a demand in Chinese steel demand of late this has played a part in the weaker AUD. Next week will be quiet on the data front with just Australian unemployment numbers releasing.

The current interbank midrate is: NZDAUD 0.9286 AUDNZD 1.0762

The interbank range this week has been: NZDAUD 0.9232- 0.9325 AUDNZD 1.0723- 1.0831