Another Cyclical Low For NZD/USD, Monthly Truck & Card Spending Activity Due

NZD/USD sits at 0.5565, slightly above fresh cyclical lows from overnight (0.5545), as the USD remained on the front foot. The 0.5470 level, the low from 2020, remains a focus point. Coming up shortly is the ANZ Truckometer and card spending figures for September.

• There aren't consensus estimates for these prints, but they have shown better trends as we progressed through Q3 (Truckometer rose 7.0% m/m in August).
• US equities finished lower (SPX -0.75%), but away from worst levels. Slightly dovish comments from Fed Vice Chair Brainard, around some caution given the pace of recent hikes, likely helped bring markets off lows. US fixed income markets were shut for the Columbus day holiday.
• The VIX also back away from intra-session highs, closing at 32.45%, after touching a high of 34%.
• The initial impetus for NZD was resilience during the overnight session, but the factors above, along with fresh AUD downside, ultimately weighed, particularly through US trading.
• AUD/NZD touched a low of just under 1.1270 overnight, but we are now back to 1.1315/20, as NZD weakness played catch up.