The pair closed in NY Monday at $1.6984 after rate failed to build on its brief show above $1.7000, the rate marking recovery highs yesterday of $1.7001, off an intraday low of $1.6973, before easing to $1.6980 ahead of the close. Rate saw an early high of $1.6987 in opening Asian trade before it was pressed back to $1.6980 again, though willing buyers here lifted it back up to a session high of $1.6988. Recovery efforts proved short lived as rate was pressed back to retest the earlier lows, breaking down to $1.6968 as market reacted to the NZ Fonterra price cut in milk products that knocked Kiwi sharply lower. Rate edged back above $1.6970 and was seen settled ahead of the European open. Mortgage lending data at 0830GMT provides the domestic interest thismorning , mortgage approvals median seen at 63.0k vs 61.7k last. Moves overnight were generally dollar driven with euro-sterling holding a tight stg0.7910-15 range. Sterling remains favoured, though traders will prefer to buy cable dips, with the $1.6950/40 area seen as key support. Further demand seen behind at $1.6920. Resistance remains around $1.7000, with a break and clear above seen needed to spark fresh bullish sentiment.
