New Zealand dollar trades back below US$0.63
Written by
Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback currently trading at US$0.6277 at the time of writing. The NZD/USD pair tumbled below the crucial support of US$0.6300 in Tuesday’s New York session after facing selling pressure above the key resistance of US$0.6350 with investors turning cautious ahead of a slew of United States economic data this week. However, the near-term outlook of the Kiwi asset is still upbeat as the 20-day Exponential Moving Average (EMA) near US$0.6250 is sloping higher. On the local data front yesterday the number of building consents issued in April dropped 7.6 per cent from a month earlier - a disappointing result for those hoping a building boom will be the answer to housing affordability woes. In the year ended April 2017, 30,371 new homes were consented - up 8.3 per cent from the previous 12 months, and the most for an April year since 2004, Statistics NZ said. But overall the number of new dwellings consented in Auckland over the past year, still remained lower than what was needed to keep up with surging population growth in the region, he said. Looking forward to the rest of the week and on Friday in New Zealand we will see the latest monthly ANZ Commodity Price Index.Key Movers
Overnight the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises sharply to near 101.00. However, 10-year US Treasury yields tumble to near 3.75%. The US Dollar bounced back strongly after the Federal Reserve (Fed) Chair Jerome Powell pushed back market speculation for another interest rate cut of 50 basis points (bps) in November. US manufacturing held steady in September. The Institute for Supply Management (ISM) said its manufacturing PMI was unchanged at 47.2 last month. Despite holding steady, the reading still came in weak, as a PMI below 50 indicates a contraction in the manufacturing sector. The data sets investors up for Friday's September jobs report, the highlight in a week full of closely watched economic data. Investors are watching for confirmation that the US economy is cooling, rather than crumbling. The tech-heavy Nasdaq Composite led the declines, shedding around 1.5%. The Dow Jones Industrial Average moved about 0.4% lower, while the benchmark S&P 500 finished the day down roughly 0.9%.Expected Ranges
- NZD/USD: 0.6200 - 0.6400 ▼
- NZD/EUR: 0.5600 - 0.5800 ▼
- GBP/NZD: 2.1050 - 2.1250 ▲
- NZD/AUD: 1.0850 - 1.1050 ▼
- NZD/CAD: 0.8400 - 0.8600 ▲