NZD/USD – Kiwi yawns ahead of business confidence, RBNZ financial stability report

The New Zealand dollar is almost unchanged in the Tuesday session. In North American trade, NZD/USD is trading at 0.6543, down 0.08% on the day. On the release front, U.S. CB Consumer Confidence CB consumer confidence improved to 134.1 points. Down under, it’s a busy day. The RBNZ releases its semi-annual financial stability report, with a press conference hosted by RBNZ Governor Orr. This will be followed by ANZ Business Confidence, which has been mired deep in negative territory. Will we see any improvement in the May release?  On Wednesday, the government releases the annual budget. On Tuesday, the government was forced to admit that the budget had been hacked, after the opposition released key parts of the budget.

The markets will all be all ears as the RBNZ releases the financial stability report. Bank members will provide their view of the economic conditions, particularly inflation and growth. If the report is dovish in tone, the New Zealand dollar could lose ground.

The currency has not impressed in Q2, declining 3.9%. New Zealand’s economy has been hurt by the global slowdown, which has reduced the demand for New Zealand exports. China is New Zealand’s largest trade partner, with 25% of New Zealand exports going to the Asian giant. The ongoing trade war between the U.S. and China has caused a slowdown in the Chinese economy. With no end in sight to the conflict, investor risk appetite is weak, which is weighing on the New Zealand dollar.

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NZD/USD Fundamentals

Tuesday (May 28)

• 9:00 US HPI. Estimate 0.2%. Actual 0.1%
• 9:00 US S&P/CS Composite-20 HPI. Estimate 3.1%. Actual 2.7%
• 10:00 US CB Consumer Confidence. Estimate 130.1. Actual 134.1
  
• 17:00 RBNZ Financial Stability Report
• 19:00 RBNZ Governor Orr Speaks
• 21:00 New Zealand ANZ Business Confidence
• 21:10 RBNZ Governor Orr Speaks

Wednesday (May 29)

• 22:00 New Zealand Annual Budget Release

*All release times are DST

*Key events are in bold

NZD/USD for Tuesday, May 28, 2019

NZD/USD May 28 at 13:05 DST

Open: 0.6543 Low: 0.6559 High: 0.6543 Close: 0.6543

NZD/USD Technical

NZD/USD posted small gains in the Asian session. The pair moved higher in European trade but gave up these gains. NZD/USD has recorded small losses in the North American session

• 0.6539 is under pressure in support
• 0.6607 is the next 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, and 0.6793

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