Offshore markets have once again taken an axe to the kiwi. But, contrary to the pattern observed over the past fortnight, the NZD/USD hasn’t bounced off key support around 0.8180/90. In other words, the currency looks to have broken lower. It currently trades around 0.8130. Broad USD strength and commodity price weakness were the architects of the kiwi’s demise. A string of upbeat US economic data overnight bolstered hopes next week’s payrolls/ISM combo will print strong enough for the Fed to taper QE in December (see Majors). At the same time, generalised commodity price weakness (oil down 1.9%, broader CRB index down 0.6%) sapped demand for the ‘commodity currencies’ – AUD and CAD included.
Read the full report: FX Daily
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