The NZD/USD has traded a fairly tight range over the past 24-hours but sits a little lower at 0.8250 this morning. Over the past few days the NZD has given back almost all its post-US FOMC surge higher. It now sits around 0.8250, a similar level to where it traded mid-last week.
The NZD/USD initially dipped lower yesterday morning after August figures showed a wider NZ trade deficit than expected ($1191m vs. $700m expected). This resulted from both higher imports and weaker exports than anticipated. While the outcome will be a drag on Q3 current account calculations we see a narrower deficit ahead, based on an extremely strong outlook for the diary sector. Overnight the NZD/USD found support at the 0.8220 level.
Read the full report: FX Daily
BNZ