- NZD/USD rises on PMI data
- June PMI rises to 56.3
- New Zealand blames Australia for the rise in COVID-19 cases
The New Zealand dollar (NZD/USD) is showing a sideways trend after Business NZ Performance Manufacturing Index (PMI) rose to the highest in June at 56.3. The risk sentiment for the Kiwi is also enhanced by the surge in COVID-19 cases in Australia.
Time : 07-17-2020
Pivot : $0.6545
Technical View : Long above $0.6565
Targets : $0.6581 – $0.6592 – $0.6612
Comments : Sideways
Last Price : $0.6554
Technical View : Short below $0.6525
Targets : $0.6508 – $0.6492 – $0.6476
Manufacturing shows signs of recovery in
The June PMI was an improvement from May by 16.5 points, and it is the highest in 26 months. Catherine Beard, the executive director for the manufacturing of BussinessNZ, indicated that the growth was a relief for the industry considering the turmoil that has been experienced in recent months.
Equally, the New Zealand Treasury Activity Index was -1% YoY compared to may when it was -6%. June saw some growth in electronic card spending, manufacturing activity, and traffic movement. Other indicators also continued to show recovery but are still below last year’s levels.
New Zealand blames Australia for a surge in COVID-19 cases
Tension is brewing between New Zealand and its neighbor Australia over the growing number of coronavirus cases. Deputy Prime Minister, Winston Peters took a swipe as Scott Morrison for letting the COVID-19 situation get out of hand in Australia. This comes as New Zealand has gone for over two months with zero community transmission cases.
Peters was speaking on the Today Show on Channel Nine of Friday. He stated that although eradicating COVID-19 in Australia was a tall order, the recent surge in the number of cases in Victoria was very frustrating. Peters added that when he is looking at the Australia states’ Premiers and especially at Morrison, he feels like there was a lot of loosenesses that allowed the virus to get out of hand in the country. Nevertheless, it is a disaster, and the concern will be that it spreads outside victoria to South Australia, Queensland, and beyond.