In quiet, holiday-hampered markets overnight theNZD/USD inched a little higher, to sit above 0.8360 thismorning. Yesterday’s release of the NZ PSI showed the servicessector increased its levels of expansion in September. ThePSI moved up to 55.6 in the month from 53.3 in August.Importantly, the employment index, while not strong,nudged up to 51.2 from the essentially flat reading of 50.1it recorded in August. Combined with last week’s strongPMI reading the PSI shows the economy to have broadbasedmomentum. Relative growth dynamics shouldcontinue to underpin the NZD. Overnight, the NZD/USDhas consolidated just above the 0.8360 level.
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