New Zealand votes Saturday with the Kiwi back below 0.5600
New Zealand votes on Saturday with the Kiwi back where it was before the Dollar fell to a one-month low on US midterm results. NZD/USD rose above 0.5650 on Thursday and has fallen to the session low just under 0.5600.
New Zealand is set to vote on Saturday, with the Kiwi currency currently trading below 0.5600. The NZD/USD rose above 0.5650 on Thursday but has since dropped to just under 0.5600, erasing all gains made on Wednesday. The Reserve Bank of New Zealand (RBNZ) kept interest rates at 2.75% on October 28, with tighter policy likely. A December rate hike was priced at near 75% at the beginning of the week, but has since dropped to under 50%.
Labour holds 30.7% in the latest Freshwater poll, while Prime Minister Luxon's National Party has 26.4%, with the Opportunity Party holding 5.1%. US midterm results on Thursday and Wednesday's drop in the Dollar to a one-month low occurred after Democrats took control of Congress. Jobless claims were 189K versus a forecast of 196K, and third-quarter productivity rose 3.6% against a 2.5% forecast.
The Fed's 3.75%-4.00% hold remains above the RBNZ's 2.75%. Saturday's election precedes China's October Consumer Price Index (CPI) release on Monday and trade figures on Tuesday. New Zealand's October manufacturing PMI comes out on Thursday, followed by the next RBNZ decision in December. Friday will see the release of October's Nonfarm Payrolls (NFP) and October CPI, both of which will impact the upcoming Fed meeting on December 8-9.
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