The most recent response to the US equity and rates selloff has been mixed. Vulnerable EM currencies (such as INR, BRL) are lurching lower once again, commodities are relatively resilient, while the USD is weakening against some commodity currencies. Given a basing formation unfolding in NZD/USD and EUR/NZD throwing repeated bearish signals since earlier this month, we are bracing for further NZD strength in general, especially as NZD/USD is emerging above its June peaks near 0.8140.
Read the full report: Technical Research
Barclays