There was plenty of volatility in the NZD on Friday night. The NZD/USD ended the week at 0.7880, but well off intra-night highs. The NZD/USD traded a 0.7860-0.7900 range for most of Friday. However late in the evening when the PBOC unexpectedly announced rate cuts (see Fixed Interest) the NZD burst higher. The market was no doubt speculating that rate cuts would spur China growth, assisting demand for NZ and AU commodities. However, from above 0.7940 the NZD/USD then subsided to end the week around 0.7880. Resistance remains at 0.7950, while support is eyed at 0.7840. The move higher in the NZD/USD also inspired a step higher on most of the crosses, with the exception of the NZD/AUD. The NZD/AUD had been sliding from early evening, failing to test resistance at the 0.9150 level. It came to end the week a little lower at 0.9090
Read the full report: FX Daily