Currency markets continue to be held hostage by US budgetary wrangling. Most of the major currencies drifted overnight as investors played the waiting game. Still, the NZD/USD managed to shake off its Monday-itis, bouncing from 0.8270 to 0.8330.
The NZD’s recovery looks to be a reflection of both generalised USD selling, and snippets of NZD demand from Asian real money accounts. It takes us back to the middle of the familiar 0.8240-0.8435 range. It’s hard to see this range breaking this week with the US shutdown and approaching debt ceiling debate restraining trading interest and limiting investor participation
Read the full report: FX Daily
BNZ