News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • 🇩🇪 Unemployment Rate (JUL) Actual: 5.7% Expected: 5.8% Previous: 5.9% https://www.dailyfx.com/economic-calendar#2021-07-29
  • 🇩🇪 Unemployment Change (JUL) Actual: -91K Expected: -28K Previous: -38K https://www.dailyfx.com/economic-calendar#2021-07-29
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.34%, while traders in France 40 are at opposite extremes with 72.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JAiC4NsGWC
  • Heads Up:🇩🇪 Unemployment Rate (JUL) due at 07:55 GMT (15min) Expected: 5.8% Previous: 5.9% https://www.dailyfx.com/economic-calendar#2021-07-29
  • Heads Up:🇩🇪 Unemployment Change (JUL) due at 07:55 GMT (15min) Expected: -28K Previous: -38K https://www.dailyfx.com/economic-calendar#2021-07-29
  • 🇸🇪 GDP Growth Rate YoY Flash (Q2) Actual: 10% Previous: 0% https://www.dailyfx.com/economic-calendar#2021-07-29
  • 🇸🇪 GDP Growth Rate QoQ Flash (Q2) Actual: 0.9% Expected: 0.7% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-07-29
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/JOL8rAYFRF
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Silver: 1.79% Oil - US Crude: 0.89% Gold: 0.68% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/toLClkhHhi
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.47% 🇨🇦CAD: 0.40% 🇬🇧GBP: 0.33% 🇪🇺EUR: 0.21% 🇨🇭CHF: 0.20% 🇯🇵JPY: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/lS2BQ4hFSG
New Zealand Dollar Forecast: Covid Resurgence Puts Sentiment to Test

New Zealand Dollar Forecast: Covid Resurgence Puts Sentiment to Test

Thomas Westwater, Analyst

New Zealand Dollar, NZD/USD, Delta Variant, Travel Bubble -Talking Points

  • Asia-Pacific traders taking cautious approach as Covid risks reemerge
  • New Zealand building permits drop for first time since February in May
  • NZD/USD trades largely unchanged after a bout of weakness last week

Thursday’s Asia-Pacific Outlook

Asia-Pacific markets may see a neutral open as a stronger US Dollar weighs on risk-sensitive currencies such as the Australian Dollar and New Zealand Dollar. Market sentiment has held up fairly well in the face of the quickly spreading Delta Covid variant, although traders are keeping a close eye on the strain’s impacts across major economies.

The region’s economic recovery showed a small road bump on Wednesday when China reported a slight decline in its factory activity. While the manufacturing purchasing managers’ index (PMI) for June via the National Bureau of Statistics (NBS) beat expectations, it saw a decrease from the prior month. However, a highlight in the report showed a pickup in new orders growth, an encouraging sign for the coming months.

Still, the Asia-Pacific region and other regions across the globe face a much larger slowdown threat if the Delta Covid variant manages to drive up case figures to the point where policy makers are forced to enact additional lockdowns. In fact, Australia is already in the beginning phase of a two-week lockdown in portions of New South Wales (NWS), including the city of Sydney.

New Zealand announced that its travel bubble with Australia – which was halted over the weekend – will resume in early July. The travel corridor was suspended due to Covid outbreaks in Sydney and other portions of Australia. New Zealand government officials are closely monitoringcase figures in Australia due to the number of travelers entering and exiting the two countries over a daily basis. New Zealand’s Prime Minister Jacinda Ardern said earlier this week:

The rise of the Delta variant and the risk it poses to the trans-Tasman bubble means it's timely to consider additional measures for our toolbox to strengthen the bubble and reduce the risk of COVID-19 spreading in New Zealand.”

Thursday morning, building permits for May saw a -2.8% drop on a month-over-month basis. That is down from an upwardly revised 5.1% increase in April, according to the DailyFX Economic Calendar. The economic indicator is used as a barometer to gauge consumer confidence in the housing market. Last month’s reading is the first negative number since February when permits dropped 19.5%.

NZD/USD Technical Outlook:

The New Zealand Dollar has seen muted price action over the past 24 hours against the US Dollar. The currency pair is trading below a level of prior support seen through early April trading after dropping back below the 200-day Simple Moving Average earlier this week. That early April level may serve as resistance on the next push higher. To the downside, March support near the 0.6941 level could underpin prices.

NZD/USD Daily Chart

nzdusd

Chart created with TradingView

New Zealand Dollar TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES