Forex Strategies

Daily FX Wrap and Strategy

The NZD edged lower on Friday, dipping 0.1% against theUSD to 0.8810.NZD/USD had another peek above 0.8830,

Today’s highlights: EURJPY below 137.70 completes an important top, for 136.23.

The NZD failed to breach the post-float high against theUSD yesterday, falling just three points shy.

Today’s highlights: NZDUSD’s extension above .8795 keeps the spotlight higher on medium-term resistance at .8845/61.

Disappointing economic data from China and Eurozone and concerns over the banking sector in Portugal have weighed on market into the open.

RBNZ and RBA actions and words fully account for the spring higher in NZD/AUD from 0.9090 to ~0.9350.

The NZD is higher on the back of the US FOMC Minutes,up 0.4% against the USD to 0.8820.

Markets are quiet with most currencies having gained or lost between +/‐0.1% since yesterday’s NA close.

The month of June was hallmarked by two blows for our bearish NZD/USD view, delivered by the two central banks critical to that cross.

The NZD topped the G10 leaderboard overnight, thoughlagged gains among emerging market currencies. It is 0.3%stronger against the USD at 0.8790.

Markets are quiet leading into the NA session that will kick off earnings season with the release of Alcoa’s earnings.

Today’s highlights: USDCAD has found renewed buying at support at 1.0612/00, and we continue to look for a base here.