New Zealand dollar remains relatively unchanged trading above US$0.60
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Daily Currency Update
The New Zealand dollar remains relatively unchanged this morning when valued against the Greenback, currently trading at 0.6058 at time of writing. NZD/USD breaks its three-day losing streak, trading around 0.6070 during the Asian hours on Thursday. However, the upside for the NZD/USD pair could be limited by recent data showing that inflation in New Zealand has slowed to its lowest level in over three years. This has increased the likelihood of the Reserve Bank of New Zealand (RBNZ) reducing interest rates at its next monetary policy meeting in November. This week in New Zealand, inflation fell in the September quarter to its lowest rate in more than three years – and if not for rent rises and council rates, the price slowdown would have been even more dramatic. Inflation fell to 2.2% year-on-year, well below the June quarter and also slightly below consensus forecasts of 2.3%. The 2.2% annual increase in the Consumer Price Index (CPI) is down from a 3.3% annual increase in the June quarter. Imported (or tradeable) inflation fell 1.6% for the year. While domestic (non-tradeable) inflation remained elevated at 4.9%, lower than many economists had forecast. Higher rent prices were the biggest contributor to the annual inflation rate, up 4.5%. Almost a fifth of the 2.2% annual increase in the CPI was due to rent prices. There are no scheduled releases today.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, has continued its upward trajectory, marking its fifth consecutive day of gains. At press time, the DXY trades near 104.00. U.S. retail sales increased slightly more than expected in September, supporting views that the economy maintained a strong pace of growth in the third quarter. Retail sales rose 0.4% last month after an unrevised 0.1% gaining in August, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would rise 0.3%. The U.S. central bank embarked last month on its easing cycle, with an unusually large half-percentage-point cut in its policy rate, lowering it to the 4.75%-5.00% range, amid growing concerns about the labor market. The Fed hiked rates by 525 basis points in 2022 and 2023 to curb inflation. In other news, US citizens filing new applications for unemployment insurance hit 241K for the week ending October 11. This was below consensus of 260K and the previous week's tally, which was revised upward to 260K. US Initial Jobless Claims for the week ended October 11 also beat market expectations, coming in at 241K. Investors expected the week’s new jobless claimant count to hold steady at the previous week’s revised 260K.Expected Ranges
- NZD/USD: 0.5950 - 0.6150 ▲
- NZD/EUR: 0.5500 - 0.5700 ▲
- GBP/NZD: 2.1350 - 2.1550 ▼
- NZD/AUD: 1.0950 - 1.1150 ▼
- NZD/CAD: 0.8250 - 0.8450 ▲