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US equities remained largely unchanged amidst a series of ongoing earnings reports. The US 10-year yield decreased slightly by 1.2 basis points to 4.24%.
Overnight, The Richmond Fed manufacturing index dropped to -17 in July from -10 in June, marking its lowest point since mid-2020. The report showed weakness like the Philly non-manufacturing index, with declines in shipments, new orders, and capacity utilization, while inventories of finished goods increased. While, existing home sales declined in June, marking the fourth consecutive month of decrease and the lowest level recorded this year. These sales make up 90% of residential real estate transactions.
Overall falling commodity prices are still weighing down the Trans-Tasman currencies, while the yen continues to be popular.
NZDUSD is trending down towards 0.5950. Aside from a brief increase at the start of Monday, any upward movements this week have been small. Short-term forecast today, it might reach up to 0.5975, but it’s likely that sellers might intervene around 0.5965. The decline has been quick and significant, making the NZD appear oversold on the charts. This suggests there could be a potential for a substantial rebound at some point. However, it’s uncertain how much further it will fall.
NZDAUD is stable around 0.9000. There’s support at 0.8980 and resistance in the 0.9020. More data or central bank meetings are needed to drive significant movements.
NZDJPY exchange rate has decreased by 1.3% to 92.7, resulting in a total drop of 6.5% over the past two weeks from a high of 99.00. Two weeks ago, the forecasted target of 89.00 by the end of Q3 seemed unlikely, but with the current rapid decline, it could reach that target by next week.
NZDGBP is slightly weaker and keeps testing new lows around 0.4610. Similarly, NZDEUR is testing fresh lows at 0.5480. Both the GBP & Euro are slightly weaker against the USD.
There’s nothing significant happening in New Zealand today. In Australia, PMI data will be released at 11:00. Tonight, we’ll see PMI figures from across Europe, and the Bank of Canada will announce its rate decision, with a 90% chance of a rate cut already factored in.
Here are the latest mid-market rates:
Currency Pair | Mid-market rate |
NZD/USD | 0.5958 |
NZD/AUD | 0.9008 |
NZD/JPY | 92.70 |
NZD/CNY | 4.3428 |
NZD/EUR | 0.5489 |
NZD/GBP | 0.4615 |
NZD/HKD | 4.6522 |
NZD/SGD | 0.8017 |
NZD/USD 24 HOURS
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