The New Zealand dollar is flat on Wednesday, after posting sharp losses this week. In North American trade, NZD/USD is trading at 0.6579, down 0.04% on the day. On the release front, New Zealand Visitor Arrivals declined by 3.1% in April, marking a fourth decline in the past five releases. In the U.S, the focus was on consumer inflation indicators. CPI slowed to 0.1%, down from 0.3% in the previous release. This matched the estimate. The core reading posted a gain of 0.1% for a fourth straight month, shy of the forecast of 0.2%. On Thursday, the U.S. releases unemployment claims, while New Zealand releases the Business NZ Manufacturing Index.
China is New Zealand’s largest trade partner, so it’s no surprise that the slowdown in the Chinese economy has hurt the export-reliant New Zealand economy. There are further signs that the Chinese economy is feeling the effects of the trade war with the U.S. Chinese consumer inflation rose at an annualized rate of 2.7% in May, matching the forecast. However, producer price inflation slowed to 0.6% in May, down from 0.9% in April. As well, Chinese auto sales plunged 16.4% in May, its worst monthly decline on record. This marked an 11th successive decline and comes after a 14.6% drop in April. The soft numbers are reflective of the slowdown which has gripped the Chinese economy, and investors remain concerned, as the trade war with the U.S. shows no signs of easing.
Tuesday (June 11)
- 18:45 New Zealand Visitor Arrivals. Actual -3.1%
Wednesday (June 12)
- 8:30 US CPI. Estimate 0.1%. Actual 0.1%
- 8:30 US Core CPI. Estimate 0.2%. Actual 0.1%
Thursday (June 13)
- 8:30 US Unemployment Claims. Estimate 215K
- 18:30 New Zealand Business NZ Manufacturing Index
*All release times are DST
*Key events are in bold
NZD/USD for Wednesday, June 12, 2019
NZD/USD June 12 at 12:25 DST
Open: 0.6582 Low: 0.6592 High: 0.6566 Close: 0.6579
NZD/USD edged lower in the Asian session. The pair moved higher in European trade but gave up some of these gains. The pair has shown limited movement North American session
- 0.6539 is providing support
- 0.6607 is a weak resistance line
- Current range: 0.6539 to 0.6607
Further levels in both directions:
- Below: 0.6539, 0.6424 and 0.6348
- Above: 0.6607, 0.6699, 0.7055 and 0.7124
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