New Zealand dollar remains below US$0.61
Written by
Daily Currency Update
The New Zealand dollar is slightly stronger this morning when valued against the Greenback, currently trading at US$0.6092 at the time of writing. The NZD/USD pair continues to feel downward pressure from the deflation fears in its largest trading partner, China. The National Bureau of Statistics of China reported that the country's monthly Consumer Price Index (CPI) held steady at 0% in September, against August’s increase of 0.4%. The annual inflation rate rose by 0.4%, falling short of the expected 0.6%.Meanwhile, the Producer Price Index (PPI) experienced a year-on-year decline of 2.8%, a larger drop than the previous decrease of 1.8% and surpassing expectations of a 2.5% decline. Looking ahead this week in New Zealand and today, Reserve Bank of New Zealand (RBNZ) Governor, Adrian Orr, is due to speak about improving Maori access to capital, in Taupo.
BusinessNZ will release the latest Performance of Services Index a survey of purchasing managers that asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. On Wednesday, Statistics New Zealand will release the latest Consumer Price Index (CPI) for the quarter.
Key Movers
The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six currencies, edged up 0.38% to 103.30, its highest level since early August 2024. Gold price retraces after hitting a daily high of $2,666 on Monday as China’s stimulus failed to relieve the financial markets and the Greenback extended its advance.The XAU/USD trades at $2,650, down some 0.26% at the time of writing. The S&P 500 was up 0.8% in afternoon trading, building on its record set on Friday. The Dow Jones Industrial Average came back from an early loss to rise 225 points and add 0.5% to its record, as of 2:35 p.m. ET, while the Nasdaq composite was up 1%. The U.S. bond market remained closed for the day because of the Monday holiday.
Looking ahead this week, US Retail Sales data on Thursday is projected to show continued consumer spending strength supported by favourable economic conditions. Business inventories and industrial production reports on Thursday will provide insight into overall economic activity.
Expected Ranges
- NZD/USD: 0.6000 - 0.6200 ▼
- NZD/EUR: 0.5500 - 0.5700 ▼
- GBP/NZD: 2.1300 - 2.1500 ▲
- NZD/AUD: 1.0950 - 1.1050 ▼
- NZD/CAD: 0.8300 - 0.8500 ▲