Yesterday’s trade saw NZD/USD within the range of 0.6496-0.6561. The pair closed at 0.6528, losing 0.06% on a daily basis, while marking its third consecutive trading day of decline. The daily low was a lower-low test of the low from Monday and also the lowest level since last Friday, when a daily low of 0.6495 was reached.
At 9:35 GMT today NZD/USD was gaining 0.37% for the day to trade at 0.6554. The pair touched a daily high at 0.6588 at 3:50 GMT, which has been a failed attempt for a test of 0.6600. The pair has been trading below the weekly central pivot point for a third straight day, while November 6th low of 0.6495 may serve as a level of support.
Today NZD/USD trading may be influenced by the macroeconomic report listed below.
Fundamentals
New Zealand
Business NZ PMI
At 21:30 GMT Business NZ is expected to announce the results from its survey in October, which encompasses purchasing managers in New Zealand’s manufacturing sector. The corresponding Performance of Manufacturing Index came in at a reading of 55.4 in September, improving from 55.0 in August. Septembers value has been the highest one since February 2015, when the gauge was reported at 56.1. This compound index provides clues over how strong activity in the nation’s manufacturing industry is. Values above the key level of 50.0 are indicative of optimism (expanding activity). Higher activity usually implies potential economic growth and accelerating rate of inflation. Higher readings of the index would support the New Zealand dollar.
United States
Veterans Day
Today is the Veterans Day public holiday in the United States, which honors all individuals who have served in the US military. American citizens observe this day by attending ceremonies and parades, where veterans are allowed to talk about their time in the service and to receive gratitude for their sacrifice. Banks in the country are to remain closed.
Bond Yield Spread
The yield on New Zealand’s 2-year government bonds went as high as 2.705% on November 10th, or the highest level since July 30th (2.705%), after which it slid to 2.690% at the close to add 4.5 basis points (0.045 percentage point) compared to November 9th, while marking a second consecutive trading day of increase.
The yield on US 2-year government bonds climbed as high as 0.891% on November 10th, after which it closed at 0.874% to lose 1.6 basis points (0.016 percentage point) compared to November 9th. It has been the first drop in the past seven trading days.
The spread between 2-year New Zealand and 2-year US bond yields, which reflects the flow of funds in a short term, expanded to 1.816% on November 10th from 1.755% on November 9th. The November 10th yield spread has been the highest one since October 30th, when the difference was 1.827%.
Meanwhile, the yield on New Zealand’s 10-year government bonds soared as high as 3.585% on November 10th, or the highest level since July 16th (3.625%), after which it closed at the exact same level to appreciate 9 basis points (0.09 percentage point) compared to November 9th, while marking a second consecutive trading day of increase.
The yield on US 10-year government bonds climbed as high as 2.353% on November 10th, after which it slipped to 2.336% at the close to lose 1.3 basis points (0.013 percentage point) compared to November 9th. It has been the first drop in the past seven trading days.
The spread between 10-year New Zealand and 10-year US bond yields widened to 1.249% on November 10th from 1.146% on November 9th. The November 10th yield difference has been the most notable one since October 27th, when the spread was 1.313%.
Daily and Weekly Pivot Levels
By employing the Camarilla calculation method, the daily pivot levels for NZD/USD are presented as follows:
R1 – 0.6534
R2 – 0.6540
R3 (range resistance) – 0.6546
R4 (range breakout) – 0.6564
S1 – 0.6522
S2 – 0.6516
S3 (range support) – 0.6510
S4 (range breakout) – 0.6492
By using the traditional method of calculation, the weekly pivot levels for NZD/USD are presented as follows:
Central Pivot Point – 0.6604
R1 – 0.6712
R2 – 0.6901
R3 – 0.7009
S1 – 0.6415
S2 – 0.6307
S3 – 0.6118
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