The NZD/USD was dragged lower by the AUD yesterday, but stabilised overnight to sit around 0.8180 currently. There were limited domestic data releases yesterday. Weekly mortgage approvals data for the week to 29 November rose 2% from the previous week but were down 16% on a year earlier. It seems that recently implemented LVR restrictions are having an impact but are not out of line with the RBNZ’s central assumptions. However the NZD/USD suffered by association as the AUD/USD was knocked lower after a disappointing AU Q3 GDP release (see Majors). It fell sharply from 0.8240 to around 0.8200 but found its feet overnight to trade around 0.8180 this morning. A toll was also taken on the NZD relative to its key European peers. The NZD/GBP fell before flirting with the crucial 0.5000 level for most of the night, sitting around 0.4990 this morning. The NZD/AUD however benefitted from AUD selling. The NZD/AUD gapped higher after the GDP release and then built on its gains overnight. The NZD/AUD now sits at 0.9080. The NZD/AUD was last at this level when it briefly spiked toward 0.9400 in October 2008. There is no domestic data scheduled today. More broadly, market sentiment will remain in limbo ahead of tomorrow night’s US payroll data. Near-term support for the NZD/USD is eyed at 0.8150. Resistance should be encountered approaching 0.8220, ahead of 0.8260.
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