Home Daily Commentaries New Zealand dollar trades above US$0.63 

New Zealand dollar trades above US$0.63 

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Wednesday 25 September, 2024

Daily Currency Update

The New Zealand dollar is stronger this morning when valued against the Greenback currently trading at US$0.6340 at the time of writing. The Kiwi dollar rallied yesterday afternoon after the announcement of China’s massive stimulus. The People's Bank of China (PBOC) has unveiled a new stimulus package aimed at revitalizing the nation's economy. This package is the second largest stimulus effort following only that of the pandemic. PBoC provided CNY 74.5 billion in liquidity to the banking system through a 14-day reverse repo, lowering the rate from 1.95% to 1.85%. Additionally, the PBoC injected CNY 160.1 billion via a 7-day reverse repo, maintaining the rate at 1.7%. The Reserve Bank of New Zealand (RBNZ) remains on track for additional rate cuts this year, with markets fully anticipating another 25 basis points reduction in October. Recent data showed that the economy contracted in the second quarter, highlighting persistent economic weakness in New Zealand. Further upside above the Year-To-Date high of US$0.6330 would drive the asset towards the December 26 high of US$0.6400, followed by the 25 January 2023 low of US$0.6450.

Key Movers

The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, posted some losses on Tuesday after the release of the Conference Board’s Consumer Confidence data. US Consumer Confidence unexpectedly plunged in September, falling below expectations to 98.7. The Conference Board revealed that Consumer Confidence declined in September, hitting its lowest level since August 2021, due to growing concerns about the labor market and the overall economic outlook. Gold prices hit a new all-time high (ATH) during Tuesday's North American session. The XAU/USD trades at $2,651 after reaching an ATH of $2,655. All three of the major indexes closed higher on Tuesday, with the Dow Jones Industrial Average and S&P 500 both ending the day at record highs. Going forward, investors will focus on commentaries from Fed officials and the United States (US) Personal Consumption Expenditure Price Index (PCE) for August, which will be published on Friday.

Expected Ranges

  • NZD/USD: 0.6250 - 0.6450 ▲
  • NZD/EUR: 0.5550 - 0.5750 ▲
  • GBP/NZD: 2.1050 - 2.1250 ▼
  • NZD/AUD: 1.0750 - 1.0950 ▲
  • NZD/CAD: 0.8400 - 0.8600 ▼

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.