The NZD/USD experienced quiet trading during Queen’s Birthday Monday. However, it was launched higher early this morning on the back of broad USD selling. It trades just below 0.8100 currently. The NZD and AUD were key beneficiaries of heavy USD selling early this morning, after the release of a weakerthan- expected US ISM. The NZD has strengthened around 1.70% relative to the USD since the end of last week. This reinforces our view that the NZD is not now on a one-way path lower as the USD broadly strengthens. Sentiment toward the USD will however remain a key driver of the NZD/USD this week, with the key event being Friday’s US non-farm payrolls data.
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BNZ