Fresh Multi Month Highs Amid Strong Risk Appetite

NZD/USD was the second best performer in the G10 space through Tuesday's session, with gains nearly of 0.90% at this stage. This puts the pair in the 0.6265/70 region in early Wednesday trade. Intra-session highs were at 0.6273, so not far from current spot levels.

• Tuesday highs were very close to late July highs (0.6274). A break above this level is likely to see 0.6300 targeted. Note mid July highs came in at 0.6412. On the downside, the 20-day EMA sits back near 0.6140, leaving the Kiwi in an uptrend.
• Risk appetite was supportive for NZD through the session, with positive EU and US equity gains. Core yields were weaker in the US but steady in the US (10yr near 3.93%).
• NZD/JPY got to the 90.35/40 region, back above all key EMAs. This followed yesterday's dovish BoJ hold. Yen was an underperformer in the G10 space through Tuesday trade.
• Whole milk prices 2.9% at the GDT auction earlier today, while the ANZ consumer confidence index rose 1.3% to 93.1, fresh highs back to early 2022.
• RBNZ Governor Orr also appeared before NZ parliament earlier today. Familiar comments were made around the policy outlook - core inflation remains too high, net immigration is very strong, while the final yards of the inflation battle will be tough (BBG).