New Zealand dollar holds above US$0.62
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Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback, currently trading at 0.6153 at time of writing. The Kiwi dollar rallied significantly by more than 0.5%, but struggles to seize the two-week high of 0.6270 in Thursday’s North American session. The Kiwi dollar now faces slight pressure as the US dollar has rebounded after the release of the United States Initial Jobless Claims data for the week ending September. Yesterday on the local front, Stats NZ confirmed the Kiwi economy contracted by 0.2 per cent in the quarter to June and 0.2 in the previous 12 months. It is the fifth quarter in the last seven that GDP figures have been in the red, confirming an economy in retreat, ravaged by high interest rates. Even more dire was the GDP per head result, an 0.5 per cent fall, marking the seventh consecutive quarter of negative results. The GDP per capita figures show the Kiwi economy has essentially been propped up by bumper migration in the past two years. Looking ahead today and the Reserve Bank of New Zealand will release the latest Credit Card Spending, which is correlated with consumer spending and confidence - rising debt levels are a sign that lenders feel comfortable issuing loans, and that consumers are confident in their financial position and eager to spend money.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, is trading flat near 100.70 on Thursday, as the market digests the Federal Reserve's (Fed) 50-basis-point (bps) cut. Gold prices advanced on Thursday reclaiming $2,600. At the time of writing, XAU/USD trades at $2,589, up over 1%. Meanwhile, US Treasury yields follow Gold’s footsteps, with the 10-year T-note yielding 3.74%, rising three and a half basis points. However, this has failed to underpin the Greenback, which, according to the US Dollar Index (DXY), dropped 0.31% to 100.62. On the data front, the latest weekly jobless claims report from the Labor Department, released on Thursday, provided a snapshot of the economy's health. It reported jobless rolls have shrunk to levels last seen in early June and initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 219,000 for the week ended Sept. 14, the lowest level since the middle of May. Economists polled by Reuters had forecast 230,000 claims for the latest week. Claims have been little changed since dropping from an 11-month high of 250,000 in late July, which economists mostly blamed on temporary plant shutdowns in the automobile industry.Expected Ranges
- NZD/USD: 0.6150 - 0.6350 ▼
- NZD/EUR: 0.5500 - 0.5700 ▲
- GBP/NZD: 2.1150 - 2.1350 ▼
- NZD/AUD: 1.0850 - 1.1050 ▼
- NZD/CAD: 0.8350 - 0.8550 ▼