Gains As Equity Rally Continues

NZD/USD prints $0.5960, little changed from levels seen in late NY trading.

• The pair was under pressure late in the Asia session yesterday, as Chinese stocks traded softer, before finding support at the $0.5900 level. The pair had a peak intraday rally of 1.7% overnight printing a high of $0.6000.
• US stocks extended their rally, with a 3rd day of gains, as investors eyed the prospect of gridlock in the US government after today's midterms with the GOP expected to control at least one chamber of congress. The S&P500 rose ~0.56%.
• NZD/USD came off highs as turmoil in the crypto space weighed on broader risk appetite. This move took us back to the 0.5950/60 region.
• Treasury yields fell, the yield on 2-year shed 6 basis points, whilst the DXY was ~0.4% softer, although the NZD did lag some of the larger moves in the G10 space.
• Despite the impressive price action NZD/USD is still in a technical downtrend. Bears look to target the 50-day EMA at $0.5858, the the 20-day EMA at $0.5809. Bulls target the 100-day EMA at $0.6012.
• Coming onto the wires shortly we have October Card Spending, although the main focus will be on the U.S. midterm election results from a broader risk appetite perspective. The first polls close at 1800ET.