New Zealand dollar trades back above US$0.63
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Daily Currency Update
The New Zealand dollar is stronger this morning when valued against the Greenback, currently trading at 0.6312 at time of writing. On the upside, the NZD/USD pair may explore the region around the upper boundary of the ascending channel at the 0.6380 level. A breakthrough above the upper boundary could strengthen bullish bias and support the pair to revisit the 15-month high of 0.6409 level, recorded in December 2023. In terms of support, the NZD/USD pair may test the nine-day Exponential Moving Average (EMA) at the 0.6257 level, which is aligned with the lower boundary of the ascending channel. There are no scheduled releases today. Looking ahead, all eyes will be on Monday's ANZ Business Confidence, a survey of about 2,000 businesses, which asks respondents to rate the relative 12-month economic outlook. It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity, such as spending, hiring, and investment.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, is flat after a muted market reaction to a slew of robust US economic data. The DXY is trading at 100.88 at the time of writing. On the data front, U.S. economic growth accelerated in the second quarter amid strength in consumer spending, the government confirmed on Thursday. Gross domestic product (GDP) increased at an unrevised 3.0% annualised rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its third estimate of second-quarter GDP on Thursday. This aligns with economists expectations, as polled by Reuters. Growth in the first quarter was revised up to a 1.6% rate from 1.4%. Meanwhile, initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 218,000 for the week ended Sept. 21, the lowest level since mid-May, the Labor Department said. Economists polled by Reuters had forecast 225,000 claims. Unadjusted claims dropped by 5,957 to 180,878 last week. New orders for US manufactured durable goods rose by a marginal $0.1 billion to $289.7 billion, marking the sixth increase in seven months.Expected Ranges
- NZD/USD: 0.6200 - 0.6400 ▲
- NZD/EUR: 0.5550 - 0.5750 ▲
- GBP/NZD: 2.1000 - 2.1200 ▼
- NZD/AUD: 1.0800 - 1.1000 ▼
- NZD/CAD: 0.8400 - 0.8600 ▲