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BoP Data Eyed Ahead Of Thursday's GDP Report

NZD

NZD/USD lost ground Tuesday amid a broader sell-off in commodity-tied currencies. Declines in U.S. equity benchmarks & BBG Commodity Index took their toll on the kiwi, while the DXY finished the day little changed. The pair penetrated support from May 4/Jun 11 lows of $0.7116 and registered a fresh two-month low of $0.7105.

  • For those who may have missed it, BBG reported Tuesday that both NZ Treasury & the RBNZ advised FinMin Robertson that adding housing prices to the central bank's monetary policy remit would have little impact. Robertson implemented the change nonetheless, after wrestling with the RBNZ over the specific wording of the amended remit.
  • The RBNZ said that it added debt serviceability restrictions to its policy toolkit. See the earlier bullet for more details.
  • New Zealand's BoP current account balance comes out shortly, with Q1 GDP data due to hit the wires on Thursday.
  • With NZD/USD last sitting at $0.7122, bears look for a dip through the $0.7100 figure, towards the 200-DMA at $0.7040. Bulls look for a jump above Jun 10 high of $0.7213 would bring Jun 7 high of $0.7243 into play.

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