Month-end buying and a partial recovery in risk appetite lifted the NZD to the top of the G10 performance rankings overnight. At around 0.8320, the NZD/USD trades about ½ cent stronger than yesterday’s levels. Rising political instability saw red ink splashed across global equity and commodity markets overnight. But month/quarter/year-end real money buying of NZD and AUD insulated the usually ‘risk-sensitive’ antipodeans from the broader market fallout. And with US stocks staging a late session fight back (S&P500 from -1% to -0.5%), the NZD/USD was eventually propelled higher. The fact 0.8240/50 was tested and again held should reinforce NZD/USD support around this area.
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