New Zealand Dollar, Euro, and Dollar vs. Major Currencies

The New Zealand Dollar is feeling better.

Antipodean currencies moved in the opposite direction because of domestic factors.

After softer-than-expected retail sales data, the Australian Dollar slipped 0.2% to $0.6838.

The Kiwi is up by the same margin to a four-month high after softer-than-expected banking reforms, which led to a reduction of rate-cut expectations.

The New Zealand Reserve Bank lifted its bank capital requirement, but not as high as some investors expected. Expectations that monetary easing might be needed to offset the hike’s tightening effects reduced due to the long implementation time.

In an emailed note, ANZ analysts said that they are changing their OCR (Official Cash Rate) call to only one further 25bp OCR cut in next year’s May, taking the OCR to 0.75%. They will soften proposals and combine it with a more positive domestic outlook.

There is no official confirmation that the trade talks are going right from the Chinese side. The United States President Donald Trump announced that phase one deal might come to an end after the U.S. Presidential elections of 2020.

The New Zealand Dollar

The New Zealand Dollar added 0.4% to $0.6555. It is the highest since August. The business sentiment rebounded there, and Kiwi put on more than a cent this week.

The Kiwi has gained around 3% against the Aussie this month to stand at a four-month high of New Zealand $1.0457 per one American Dollar.

The Euro firmed nominally against the dollar to $1.1084, so against the basket of the currencies, the greenback is down by 0.1% to 97.551.

The rise in oil prices supported the exporter’s currency. It lifted the Norwegian Krone slightly to $9.1642, says the report by Tom Westbrook.

After the country’s central bank held interest rates steady and said that there were signs of stabilizing the global economy, against the greenback, the Canadian dollar hit a one-month high of $1.3203.