USD

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

AUD/USD Transfer

The Australian Dollar (AUD) fell to a 9-week low against the US Dollar (USD) Thursday extending recent losses to 0.6510. The US 10-year treasury bond yield was up 11 points to 4.19% and nears the October 2022 high. This in turn has seen a selloff in equity markets in August with the capacity to deepen. Not good for risk currencies in the near to medium term. Earlier the Reserve Bank of Australia (RBA) left interest rates on hold Tuesday at 4.10% the central bank suggesting they weren’t done yet dependent on incoming data, the AUD backtracking post the release. Non-Farm Payroll tonight with expectation of a mixed result and a slowdown of jobs data.

The current interbank midrate is: AUDUSD 0.6557

The interbank range this week has been: AUDUSD 0.6514- 0.6739

FX News

Key Points This Week

FX Update

Key Points:

Australian Manufacturing in July 49.6 vs 48.2 expected, with pressures over the past few months easing.

NZ Building Permits for June +3.5% m/m prior -2.2% which is positive, however the number is still down 20% from the June 22 figure.

Chinese media are taking pot shots at Australia again warning of tight ties with the US after the two countries expand military operations together.

US earnings season continues this week with Apple, Amazon and Uber up this week.

German Retail Sales -0.8% vs 0.2% expected in June highlighting poor consumer spending.

July Chinese manufacturing data index (49.3) remains in contraction- the 4th straight month.

The Japanese Yen (JPY) is the strongest performer over the month of July with the US Dollar (USD) the worst performer.