The NZD has finished the night around the middle of the overnight FX performance rankings. While position liquidation in the emerging markets remains a weight on the NZD, additional signs of stabilisation in Chinese growth have exerted a positive influence on the currency. The net of these factors saw the NZD/USD track a mostly sideways 0.7810-0.7865 range overnight.
In contrast, NZD/AUD remains under pressure. Yesterday’s encouraging Chinese Flash PMI (50.1 vs. 48.2 expected) has tended to benefit the AUD more than the NZD. Indeed, the AUD/USD was pitched back above 0.9000 overnight as speculative players were forced to take back a few stale short positions.
Read the full report: FX Daily
BNZ