The NZD/USD sits a little lower at 0.8660 this morning.
The NZD/USD drifted lower during the course of yesterday in the absence of domestic data releases, as NZ yields drifted lower. A speech by RBNZ’s Spencer yesterday, on financial sector regulation, provided nothing of interest to the currency. In the early hours of this morning, the NZD/USD briefly spiked higher after the lowside reading of US CPI. From below 0.8660 it briefly spiked toward 0.8700. However, later this morning as the USD recovered, the NZD/USD drifted back down to 0.8660. Support is now seen at 0.8650 ahead of 0.8600. Resistance will likely be encountered approaching 0.8720.
The NZD sits lower again relative to the AUD. The AUD was on the ascendancy yesterday, assisted by the lack of any explicit AUD negative comments by RBA Governor Steven in his scheduled speech. The NZD/AUD sits at 0.9220 this morning. Today, in the absence of NZ domestic data, a key determinant of the cross will likely be this afternoon’s (1.30pm NZT) AU CPI release.
Read the full report: FX Daily