By Jim Watson
The Kiwi has maintained its bearish tone in overnight trade, falling to a low of 0.6630 before settling at this morning’s open at 0.6650. Notwithstanding the local pressure on the NZD which we alluded to in yesterdays commentary, we are also seeing a resurgence in the USD, with the US Dollar index (which measures the greenback v 6 major currencies), rising overnight to its highest level since June 2017. This rise was supported by positive news on retail sales and last night better than expected new home sales data which jumped to 18 month highs, further reinforcing the robustness of the US economy.
Directionally, what we are seeing with the Kiwi right now is good USD strength pushing down the NZD, and with a supportive US Q1 GDP number this Friday, there is a suggestion that, whilst most see the current period of global expansion in its latter stages, the US is better placed than other leading economies.
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