NZD

FX News

NZD/EURO Transfer

The New Zealand Dollar (NZD) remains “offered” into Monday against the Euro with price just a touch lower on the open at 0.5540 (1.8050). Although risk appetite has improved with equity markets recovering it’s unusual to not have seen a reversal of sorts from the kiwi. New Zealand Inflation expectations for the third quarter releases Wednesday which should give clues as to whether we might see a shift in monetary policy from the RBNZ and hold or consider another hike? We don’t see any shifts outside the long-term bear channel happening this week with price likely to trickle lower.

Current Level: 0.5547
Resistance: 0.5700
Support: 0.5540
Last Weeks Range: 0.5534 – 0.5659

Exchange Rates

GBP/NZD Transfer

The British Pound (GBP) continue to climb against the New Zealand Dollar (NZD) Monday to meet the earlier low of 0.4775 (2.0940). Risk markets were a little subdued giving the GBP further momentum. A break clear of 0.4760 (2.10) would certainly signal further downside for the kiwi, the next target support is 0.4670 (2.1400), the pre-Brexit low of June 2016. Looking ahead we have NZ inflation expectations tomorrow and UK GDP Friday.

Current Level: 2.0942
Resistance: 2.0965
Support: 2.0510
Last Weeks Range: 2.0623 – 2.0958

Exchange Rates

NZD/GBP Transfer

The British Pound (GBP) continue to climb against the New Zealand Dollar (NZD) Monday to meet the earlier low of 0.4775 (2.0940). Risk markets were a little subdued giving the GBP further momentum. A break clear of 0.4760 (2.10) would certainly signal further downside for the kiwi, the next target support is 0.4670 (2.1400), the pre-Brexit low of June 2016. Looking ahead we have NZ inflation expectations tomorrow and UK GDP Friday.

Current Level: 0.4775
Resistance: 0.4875
Support: 0.4770
Last Weeks Range: 0.4771 – 0.4848

FX News

AUD/NZD Transfer

The New Zealand Dollar (NZD) reached a key 12-week level of 0.9325 (1.0725) late in the week against the Australian Dollar (AUD) the wash up of the RBA leaving rates unchanged last week. The pair is bouncing around the 0.9285 (1.0770) area early Tuesday as it consolidates ahead of a thin week of data releases. NZ Inflation expectations prints tomorrow with the view predicted inflation should be tracking around the 3.0% mark in two years’ time, but this shouldn’t be a big currency mover. Price in the cross could drift close to the 0.9300 (1.0750) area this week.

Current Level: 1.0772
Resistance: 1.0910
Support: 1.0730
Last Weeks Range: 1.0726 – 1.0832

FX News

NZD/AUD Transfer

The New Zealand Dollar (NZD) reached a key 12-week level of 0.9325 (1.0725) late in the week against the Australian Dollar (AUD) the wash up of the RBA leaving rates unchanged last week. The pair is bouncing around the 0.9285 (1.0770) area early Tuesday as it consolidates ahead of a thin week of data releases. NZ Inflation expectations prints tomorrow with the view predicted inflation should be tracking around the 3.0% mark in two years’ time, but this shouldn’t be a big currency mover. Price in the cross could drift close to the 0.9300 (1.0750) area this week.

Current Level: 0.9283
Resistance: 0.9320
Support: 0.9165
Last Weeks Range: 0.9147 – 0.9323

 

Uncategorized

NZD/USD Transfer

Inflation data will be key this week to determining the next move by the New Zealand Dollar (NZD), US Dollar (USD). With the kiwi travelling close to long term lows recently around the 0.6030 zone it’s an important week, will the NZD finally fall below pivotal 0.6000 or maintain enough buyer support and rally back to levels around 0.6400 seen a couple of weeks back. Certainly, NZ inflation expectations for the 3rd quarter could determine if we see a last-ditch hike by the RBNZ to bring down inflation. US CPI y/y is predicted to rise to 3.3% from 3.0%, the first time since June 2022, which may decide if the US economy falls into recession.

Current Level: 0.6105
Resistance: 0.6390
Support: 0.6065
Last Weeks Range: 0.6058 – 0.6224

FX News

FX Update: Risk Holding Up

Market Overview

Key Points:
• Non-Farm Payroll (NFP) printed poorly at 187,000 compared to 205,000 putting the US Dollar under pressure.
• The Bank of England (BoE) may need to raise rates again, we see a 70% chance the Central Bank will hike 25 points at their Sep 21 meeting.
• Germany’s economic situation is worsening as they face industrial production declines, energy rises, and a lack of consumer spending.
• The Fed have not ruled out the possibility of cutting rates in 2024
• UK House prices fell 0.3% in July vs 0.0%
• The Euro (EUR) has been the strongest currency in the month of August while the Australian Dollar (AUD) is the worst performer.

Major Announcements last week:
• Chinese July Manufacturing 49.3 vs 48.9 forecast
• RBA maintain cash rate at 4.10%
• NZ Unemployment Rate climbs to 3.6% from 3.4% in June
• Bank of England (BoE) hike 25 points to 5.25%
• Canadian Unemployment remains unchanged at 5.5%
• Non-Farm Payroll prints 187k vs 205k expected

FX News

NZD/USD Transfer

The New Zealand Dollar (NZD) slumped to a 5-week low to 0.6060 against the US Dollar (USD) this week. Friday the kiwi has started a recovery of sorts trading back to 0.6077 as I write but with global headwinds it may struggle to gain much momentum to the north. The NZ job market eased in the second quarter with job participation hitting an all-time high of 72.4% with more than 3M people now employed in the workforce. The unemployment rate rose slightly from 3.4% in the first quarter to 3.6 in the second, the question remains- will this be enough to force the hand of the RBNZ to hold interest rates at their next meeting on August 16th- we suspect not. Tonight’s Non-Farm Payroll (NFP) number is predicted to come in light reflecting an easing to the job’s market. Long term support in the cross is around the 0.6040 to 0.6000 range, recent sentiment suggests this area won’t hold.

The current interbank midrate is: NZDUSD 0.6080

The interbank range this week has been: NZDUSD 0.6061- 0.6226

FX News

NZD/GBP Transfer

The New Zealand Dollar (NZD) extended midweek losses against the British Pound (GBP) reaching fresh lows around 0.4775 (2.0950) marking a 28-month level in the cross. The Bank of England (BoE) hiked their interest rate 25 points overnight as widely predicted voting 6-3 in favour. The central bank saying they will need to hike again later this year with inflation projections this year still exceedingly high. Earlier in the week NZ job’s data released with the participation rate hitting an all-time high and the unemployment rate clicking higher to 3.6%, up from 3.4% in quarter one. The kiwi looks poorly with further declines on the horizon expected.

The current interbank midrate is: NZDGBP 0.4782 GBPNZD 2.0911

The interbank range this week has been: NZDGBP 0.4771- 0.4844 GBPNZD 2.0643- 2.0959

FX News

NZD/AUD Transfer

The New Zealand Dollar (NZD) has continued to move higher throughout the week reaching 0.9325 (1.0725) against the Australian Dollar (AUD) but it hasn’t been all one-way traffic. Although the cross remains within big picture ranges, movement over the week has certainly not been stagnant. The RBA surprised us by leaving their cash rate unchanged at 4.1% in a hawkish release amid expectation they will raise again down the track. NZ Job’s numbers reached an all-time high with 72.4% of eligible people in the workforce. However, the unemployment rate did jump to 3.6% from 3.45 in the June quarter. This may not be enough for the RBNZ to hold rates at their August 16 meeting, but we should get a better signal when NZ inflation expectations are released on Wednesday. We really do need a big-ticket risk event to shift the NZD/AUD cross out of its long-term range.

The current interbank midrate is: NZDAUD 0.9271 AUDNZD 1.0783

The interbank range this week has been: NZDAUD 0.9231- 0.9318 AUDNZD 1.0732- 1.0832