The NZD/USD was shunted around with the rest of themajors as markets responded to the US retail sales report. But overall, the currency is little changed,just 0.2% higher at 0.8630. On the crosses, the NZD/EUR gained by 0.6% to 0.6300,as data and news released overnight were in favour ofECB action in June. The cross looks tochallenge its 2014 high of 0.6342. Even accounting for theprospect of an ECB rate cut and continued talk ofquantitative easing, we still expect the cross to drifttowards 0.61 into year end. The NZD/GBP and NZD/AUDalso registered solid gains as the NZD outperformed itspeers overnight.
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