The recovery in all things NZD continued overnight, fuelled by encouraging global data and retreating oil prices. In fact, the NZD was the strongest performing G10 currency, with the NZD/USD settling back above 0.7800.
Still, we wouldn’t read too much into last night’s price action. US markets were closed, restricting liquidity and trading interest. Moreover, most investors remain content to sit on the side-lines ahead of the RBA meeting today, and the important US data later in the week. As we noted yesterday, the positive global news simply reinforces support at the bottom end of the NZD/USD’s recent 0.7690-0.8100 trading range
Read the full report: FX Daily
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