The NZD/USD has been the strongest performer amongst its peers over the past 24-hours, rising 1.3%. It sits around 0.7980 this morning. The NZD/USD traded mostly sideways yesterday, but gained strength overnight against the backdrop of a broadly softer USD. In recent weeks the fate of the NZD has been almost entirely in the hands of global developments. Today, some focus should return to solid domestic fundamentals as the RBNZ meets this morning. That said, the RBNZ will likely see the 7% decline in the NZ TWI since April as a windfall and will be reticent to say anything today likely to reignite NZD strength. Overall, it will likely play a fairly even hand not designed to influence market pricing.
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BNZ