The NZD/USD has declined to trade around 0.7800 currently. Yesterday’s release of the RBNZ’s inflation expectations survey confirmed expectations remain contained (see Fixed Interest). This provides little impediment to the RBNZ staying on hold for a prolonged period. The NZD/USD continued to subside for most of the day, attempting to break through support around the 0.7800 level overnight. It remains at this level this morning. A break lower would bring the early-Nov lows at 0.7660 into sight. Resistance is now eyed around 0.7840.
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